Dogecoin Buy Signal Emerges After 31% Correction, Analyst Sees Rebound Ahead

Dogecoin ($DOGE) may be preparing for a recovery after a key technical indicator flashed a fresh buy signal.

Analyst Ali Martinez pointed out on X that the Tom DeMark (TD) Sequential indicator has turned bullish on Dogecoin. Notably, the same indicator issued a sell signal on May 7, which was followed by a 31% decline. During that period, $DOGE fell from $0.113 to $0.078.

According to Martinez, the latest signal suggests that a rebound could be approaching. The setup becomes even more significant as Dogecoin tests a major long-term support zone.

At the time of writing, CoinMarketCap data showed $DOGE trading at $0.08552, up 0.98% over the past 24 hours. Despite the daily gain, the meme coin remains down 24% over the last month. The decline reflects broader weakness across the crypto market in recent weeks.

Bitcoin Recovery Lifts Market Sentiment

Dogecoin’s recent price action has closely tracked Bitcoin’s movement. Bitcoin rose 0.71% during the same period as investor appetite for risk assets improved.

The positive sentiment across financial markets follow expectations that a potential U.S.-Iran deal could ease geopolitical tensions. That optimism helped Bitcoin reclaim the $63,550 level.

As Bitcoin stabilizes, several altcoins, including Dogecoin, have started showing signs of strength.

$DOGE Tests Critical Support Zone

Martinez highlighted that $DOGE is currently testing a major support level near $0.081. This area marks the lower boundary of a five-year parallel channel that has historically served as a key support zone for the meme coin.

If $DOGE holds above the $0.081 level, traders could begin targeting the $0.096 to $0.10 resistance range. However, Dogecoin’s next move will depend on Bitcoin’s ability to sustain its recovery.

On-Chain Support for Dogecoin Price

Meanwhile, in an earlier post, Martinez noted that more than 30 billion $DOGE last changed hands around the $0.081 level, creating a strong support cluster.

He also stated that whales accumulated more than 200 million $DOGE over the past few weeks, signaling continued buying interest near current levels.

Martinez views the $0.081–$0.058 range as a favorable dollar-cost averaging zone for long-term investors. A chart he shared suggested that Dogecoin could eventually reach $0.50, advance toward the $1 mark, and potentially move even higher.

For now, Dogecoin remains at a critical technical juncture, and the newly flashed TD Sequential buy signal is giving bulls a reason to watch the market closely.