Dogecoin indicator flashing buy signal on 4-day chart - Is DOGE preparing for a recovery?

Dogecoin (DOGE) is currently trading below $0.25 after experiencing significant volatility and price fluctuations in recent days. As the cryptocurrency market faces a broad correction, meme coins, including DOGE, are among the most affected assets, with speculators struggling to regain momentum. Despite many efforts to push the price higher, DOGE remains under pressure, unable to reclaim key resistance levels. Investors are closely watching whether the buying camp can regain control or if the next downward trend is still ahead. The uncertainty has made traders cautious, with many waiting for strong recovery signals before re-entering the market. Cryptocurrency analyst Ali Martinez shared insightful insights about X, revealing that Dogecoin may be preparing for a recovery. According to his analysis, the TD Sequential indicator has flashed a buy signal on higher time frames, indicating that DOGE may be approaching a potential reversal. If buyers step in at the current level and take advantage of this setup, DOGE could witness a strong recovery in the days ahead. Is Dogecoin preparing for a recovery phase? Dogecoin has been at its lowest level since the end of 2024 as optimism fades, after dropping 60% from its multi-year high of 0.48 dollars. This correction is very brutal, with meme coins suffering the most in the context of a weak overall market. DOGE is currently struggling to regain crucial liquidity, making it difficult to start a recovery. Market participants are closely monitoring decision dynamics, as analysts and investors remain on the sidelines, awaiting confirmation of surpassing important supply sources or falling below current demand levels. Until a clear trend is established, uncertainty will dominate DOGE price action. Despite the prospect of a price decline, Martinez's deep understanding suggests that Dogecoin may be preparing for a recovery. According to his analysis, the TD Sequential indicator has flashed a buy signal on the 4-day chart, which may indicate that a sell-off is imminent.

TD Sequential is a highly regarded technical analysis tool that helps traders identify exhaustion trends and price reversal potential. On higher time frames, this indicator has been very effective in the past, meaning it could provide significant buying opportunities if DOGE follows its typical pattern. As market psychology remains volatile, traders are closely monitoring DOGE's next big move. If buyers step in and confirm the TD Sequential buy signal, Dogecoin could see a strong recovery in the coming days. However, failure to reclaim key levels could lead to further downside pressure, delaying any meaningful recovery. DOGE holds important demand Dogecoin is currently trading at $0.209 after a period of price volatility, dropping below $0.20 briefly before recovering above $0.22. The market remains unstable, with buyers attempting to regain control after weeks of selling pressure.

For DOGE to confirm a strong recovery, the buying side must reclaim the $0.25 level and establish it as a solid support area. This will open the door for a price increase on the 200-day moving average (MA) and the exponential moving average (EMA), key resistance levels could trigger a breakout towards higher price targets. If DOGE successfully surpasses these technical barriers, momentum may shift in favor of buyers, leading to a more sustainable uptrend. However, losing the $0.20 level again would be a bearish signal as it shows weak demand at the current price level. If this scenario unfolds, DOGE could drop towards even lower demand around $0.14, a previously acting as a key accumulation zone.