Crypto analyst Ali Martinez anticipates a possible price surge for the widely recognized meme token, $Dogecoin (DOGE.CC)$, as large-scale crypto investors increase their stakes.
What Happened: Last week Martinez shared his thought on X and spoke about a promising signal for DOGE from the Tom DeMark (TD) Sequential Indicator.
This tool is commonly used by traders to predict potential trend reversals by analyzing the closing prices of the preceding 13 bars or candles.
Martinez pointed out that large-scale crypto investors, often referred to as whales, have bought more than 90 million DOGE in the recent two days, indicating a potential price surge for the token.
The TD Sequential presents a buy signal on the #Dogecoin $DOGE 4-hour chart, anticipating a price rebound! pic.twitter.com/ffwthCQL5B
— Ali (@ali_charts) December 27, 2024
At the time of writing, DOGE was trading at $0.314, showing a slight dip in the past 24 hours.
Although Martinez cautioned about a possible pullback for Bitcoin (BTC) if it drops below $92,730, he also stated that a 20-30% correction could be "the most bullish thing that could happen to Bitcoin." Bitcoin was trading at $94,671 at the time of reporting.
Why It Matters: The prediction by Martinez about a potential price rebound for Dogecoin is significant as it comes at a time when the crypto market is experiencing volatility.
The accumulation of DOGE by crypto whales indicates their confidence in the token's potential for a price surge. This could potentially influence other investors to increase their holdings in DOGE, further driving its price. The TD Sequential Indicator's bullish signal also adds to the positive outlook for the meme token.
However, investors should be cautious as the crypto market is known for its unpredictability.
