Dogecoin’s Wild Price Rollercoaster: Is It Time to Hop On or Stay Off?

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  • Oh, what a jolly little indicator! The TD Sequential buy signal has popped up just as Dogecoin takes a tumble to $0.09, after a rather nasty 18% dip in the past week. Quite the circus act, isn’t it?
  • Analysts, like eager little squirrels, are noting a liquidity sweep at the demand zone after four months of price doing the limbo, up and down without much flair.
  • The RSI is having a little cry at 32.85 while the Bollinger Bands are stretching wider – signaling that the market might just be ready for a dramatic performance!

Well, well! Dogecoin has pulled a rabbit out of the hat with a technical signal that could turn this gloomy meme coin’s frown upside down. The TD Sequential indicator, as announced by the ever-enthusiastic analyst Ali Charts, has just flashed a buy signal for DOGE. How delightful!

This merry development comes as the token tests its critical support levels at around $0.09 after a week so brutal it could make a grown dog cry. Yes, indeed! The crypto has tumbled about 18% in the last seven days, all thanks to the wider market throwing a tantrum.

TD Sequential Waves Its Magic Wand for a Possible Trend Reversal

Our friend Ali Charts has pointed out that the TD Sequential “9” buy signal is making waves on Dogecoin’s daily chart. This cheeky little indicator spots potential trend reversals by counting nine consecutive closes that are lower than the four sessions prior. Quite the clever trick!

TD Sequential just flashed a buy signal for Dogecoin!

– Ali Charts (@alicharts)

Now, let’s see, DOGE took a nosedive from $0.11 to $0.09 earlier this February before pulling this magic trick.

Ah, but don’t you worry! The TD Sequential has had its moments of brilliance in past DOGE shenanigans, according to historical tales. Similar signals have sparked bounces ranging from 20% to 50% in comparable market antics. These delightful rebounds usually happen when the indicator flashes during those oversold periods at key support levels. A bit of good luck wouldn’t hurt, now would it?

A Liquidity Sweep Like No Other!

Our mate BitGuru chimed in with some splendid analysis, shedding light on Dogecoin’s strategic dance near current levels. The token recently conducted a major liquidity sweep around $0.09, clearing out all the pesky sell orders that lingered like unwanted guests. This liquidity grab often precedes a reversal, as the weak hands scurry away and stronger buyers gather like hungry lions!

The price just swept the major downside liquidity near $0.09 and is sitting at long-term demand after months of consolidation. If buyers defend this zone, a sharp mean-reversion move toward the prior range highs becomes very likely.

– BitGuru 🔶 (@bitgu_ru)

DOGE now finds itself snugly nestled in a long-term demand zone after four months of price doing the cha-cha between $0.10 and $0.15. BitGuru’s TradingView chart reminisces about previous “bullish beauty” rallies that started from such demand areas. Oh, what a lovely memory!

But beware! If buyers slip up and fail to defend this level, we could see more downside as support levels vanish like magic.

Technical Indicators Dance to the Tune of Oversold Conditions

Currently, Dogecoin is trapped in a bearish structure, characterized by lower highs and lower lows since late 2025. Oh dear! The price recently tangoed with the lower Bollinger Band near $0.0907, a classic sign of potential short-term oversold bounces. The bands themselves are stretching wide, which might mean a wild ride of volatility ahead!

The Relative Strength Index, bless its heart, is hanging around at 32.85, just below the 33.50 line. This positioning suggests that the market is tiptoeing towards oversold territory, though not quite deep enough to count as an alarm bell yet.

Volume analysis tells a rather captivating story: selling pressure spiked significantly during the recent tumble, confirming strong bearish momentum. A subsequent green candle shows buyers bravely stepping in at support, though overall momentum feels a tad weak. The 20-day simple moving average near $0.114 has consistently turned away recovery attempts, reinforcing the dominant bearish trend. Oh, the drama!

Critical Price Levels Set the Stage for Future Performances

Immediate support for Dogecoin sits firmly at $0.090-$0.092, marked by the lower Bollinger Band and the most recent swing low. This zone represents the last line of defense before potentially deeper losses. What a cliffhanger!

On the resistance side, the 20-day SMA at $0.114 presents the first major obstacle for any recovery attempt. Bulls need to reclaim this level with convincing volume to suggest genuine strength. Quite the challenge, indeed!

A stronger resistance barrier exists at $0.138 near the upper Bollinger Band and earlier consolidation highs. Breaking above $0.114 would signify an initial victory for buyers, but sustained recovery requires clearing $0.138 decisively. The stakes are high in this game!

These levels, alongside volume patterns, will determine whether the current support holds firm or crumbles under continued pressure. What a show it shall be!

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2026-02-07 18:19