Dogecoin TD Signal Hints at Rally to $0.50

The recent price action for Dogecoin has captured the attention of technical analysts. On the 4-hour chart, the asset printed a TD Sequential ‘9’ candle as it touched a low of $0.238. This specific signal is widely interpreted by traders as a sign of selling exhaustion, often preceding a short-term price rebound. Analyst Ali Martinez highlighted this development, noting that similar signals on the same timeframe have historically been followed by rebounds. The price has since steadied, trading around $0.245, suggesting the low may indeed be holding.

Further bolstering the bullish case is the asset’s position on the 12-hour chart. DOGE is currently sitting on an ascending trendline that has provided support since June. This dynamic support converges with a significant static level: the 0.786 Fibonacci retracement level at approximately $0.26. This creates a robust support cluster, which Martinez describes as a ‘great zone to buy’ before a potential bullish breakout. His analysis projects a period of consolidation between $0.26 and $0.30, followed by an attempt to break resistance near $0.31. A successful breach of this barrier would open the door to targets of $0.38, $0.42, and ultimately $0.50.

Complementing the TD Sequential signal is a notable shift in momentum captured by the Relative Strength Index (RSI). As observed by analyst Trader Tardigrade, the RSI for DOGE dipped into oversold territory during the recent pullback but has since moved out of it. This recovery indicates that selling pressure is abating and buying momentum may be returning to the market. A similar RSI pattern in early August was followed by a recovery rally, lending historical credence to the current setup and suggesting potential for a climb back toward the $0.30–$0.32 range.

Beyond pure technicals, Dogecoin is receiving a fundamental boost from the world of traditional finance. The recent listing of the 21Shares Dogecoin ETF (TDOG) on the Depository Trust & Clearing Corporation (DTCC) marks a significant step. This ETF provides investors with exposure to Dogecoin’s price action without the complexities of holding the tokens directly, mirroring the structure of popular Bitcoin ETFs. This development is particularly noteworthy as current market data suggests institutional flows may be playing a larger role in trading, potentially providing a more stable foundation for price appreciation than retail-driven volatility alone.

At the time of writing, Dogecoin trades around $0.24 with a substantial 24-hour trading volume of $3.55 billion. The price is up a modest 1% over the past day, though it remains down 9% for the week, reflecting the recent pressure that led to the current technical setup. The convergence of multiple bullish factors—the TD Sequential signal, RSI recovery, and strong technical support—paints an optimistic picture for traders.

The immediate future for DOGE hinges on its ability to defend the crucial support cluster near $0.26. If this level holds and buying activity continues to build, the stage could be set for the rally toward $0.50 that analysts are anticipating. However, traders will be watching closely for a confirmed break above the $0.31 resistance level as the next critical confirmation of bullish momentum. The combination of improving technical indicators and growing institutional accessibility through vehicles like the TDOG ETF suggests Dogecoin may be poised for a significant move in the coming weeks.