Dogecoin's Market Drop: Crucial TD Sequential Signal Emerges Amid $214 Million Liquidations

Dogecoin has flashed a crucial signal as the broader crypto market sees slight selling pressure. The TD Sequential indicator, a counter-trend indicator, has flashed a buy signal for Dogecoin, hinting at an impending price reversal. The indicator previously nailed the top for Dogecoin's price, and investors remain positive about the asset, with approval odds for Dogecoin spot ETFs at 90%.

Dogecoin (DOGE) has shown a significant technical reversal signal, indicating a potential price reversal in the broader crypto market, which is currently experiencing slight selling pressure. The TD Sequential indicator, a counter-trend tool, has flashed a buy signal for Dogecoin, suggesting an impending price reversal. This signal comes on the heels of a recent price consolidation and follows a period of slight selling pressure.

The TD Sequential indicator has previously accurately identified the top for Dogecoin's price, making it a reliable tool for investors. The indicator's "9" count on multiple timeframes, including the 4-hour, 3-day, and hourly charts, signals potential bearish exhaustion and a short-term reversal if the price holds above $0.094–$0.097 [1]. This signal coincides with a nearly completed cup-and-handle pattern, which projects a rally to $0.225 and potentially $0.38 or $0.80 by year-end if key resistance levels hold [1][2].

Institutional whales have accumulated 680 million DOGE tokens while retail traders have sold 1.5 billion tokens, indicating a shift in market control from speculative retail traders to long-term institutional holders [2]. This divergence in behavior suggests a potential sustained rally, as institutional adoption often precedes significant price movements.

For traders seeking aggressive positioning, the $0.21–$0.22 range represents a critical entry zone. A stop-loss below $0.165 is recommended to mitigate the risk of a breakdown [2]. If DOGE breaks above $0.25, the target could extend to $0.30, with a 165%–170% rally to $0.44 or higher possible if the price surpasses $0.29 [1]. However, overbought conditions, reflected in the Fear & Greed Index at 74, highlight the risk of a sharp correction if institutional adoption or ETF approval fails to materialize [2].

Dogecoin's protocol upgrade, Project Sakura, adds a fundamental catalyst. Transitioning from proof-of-work to proof-of-stake, this upgrade aims to enhance scalability and attract institutional adoption [1]. Meanwhile, the r/dogecoin subreddit has seen a surge in activity, with traders forecasting bullish price targets and renewed interest in DOGE’s utility [2]. Analysts like Trader Tardigrade have even projected long-term moves to $0.82 and $2.18, underscoring the asset’s speculative appeal [3].

While the technical and on-chain signals present a compelling case for a short-to-medium-term bullish setup, traders must remain vigilant. Heavy liquidation clusters near $0.215 and $0.225 could trigger volatility, and crowded long positions increase the risk of a sharp correction [1]. However, the convergence of TD Sequential signals, pattern completion, and institutional accumulation creates a favorable risk-reward profile for those willing to enter near $0.21–$0.22 with disciplined risk management.

References:
[1] https://www.ainvest.com/news/dogecoin-technical-reversal-signal-strategic-entry-points-short-medium-term-bullish-setup-2508/
[2] https://cryptodaily.co.uk/2025/09/dogecoin-etf-would-send-doge-price-above-2-but-remittix-at-010-could-see-3000-growth-by-demember
[3] https://captainaltcoin.com/dogecoin-doge-ready-to-bounce-after-sharp-dip-here-are-the-next-big-targets/