Crypto analyst Ali Martinez argued that technical signals indicating a strong uptrend are emerging on Dogecoin’s (DOGE) monthly chart. According to Martinez, the current outlook resembles the price structure seen in 2022, when DOGE gained 145% in value in a single month.
Martinez stated that the Tom DeMark Sequential indicator generated a buy signal on Dogecoin’s monthly chart last month, indicating a potential trend reversal.
According to the analyst, DOGE’s current technical outlook largely coincides with the pattern seen in August 2022. At that time, Dogecoin formed an inverted hammer pattern and a doji candle following a TD buy signal, which was followed by a 145% monthly increase.
DOGE’s monthly chart now shows an inverted hammer pattern, a buy signal, and a doji candle in the formation stage. Martinez noted that if the past scenario is repeated, a significant price movement could begin with the next monthly candle.
On-chain data also shows that large investors are taking positions with the expectation of an uptrend. According to information shared by Martinez, whales have accumulated more than 430 million DOGE in the last week. These purchases are considered to support the technical outlook.
The critical resistance level to watch for Dogecoin is $0.0813. According to the analyst, a sustained close above this level, where more than 30 billion DOGE have previously been traded, could signal a continuation of the uptrend.
According to Martinez, if the $0.0813 level is surpassed, the next resistance indicated by the URPD data will be $0.177.
