The indicator that correctly called Dogecoin’s 31% sell-off in May has now flipped to a buy signal on the 3-day chart.
Ali Martinez, a crypto technical analyst posting on X as @alicharts, flagged the signal on the Tom DeMark Sequential. DOGE was sitting at $0.0878 when the setup appeared. It has since gained 8% off that level.
Chart: Dogecoin 3-day TD Sequential signal. Source: @alicharts on X
One Signal. Two Trades. Same Tool.
On May 7, the TD Sequential printed a sell setup on Dogecoin. What followed was a clean 31% correction, price moving from $0.113 all the way to $0.078 over the weeks that came after. The signal did not miss.
Now the count has reset. The same indicator, running on the same 3-day timeframe, is completing a buy sequence. Martinez shared the chart on May 11, noting the setup directly.
As Ali Martinez posted on X (@alicharts):
“On May 7, the Tom DeMark Sequential flashed a sell signal on Dogecoin $DOGE that preceded a 31% correction from $0.113 to $0.078. Now the same indicator is flashing a buy signal, suggesting a rebound could be around the corner.”
That track record matters. A sell signal that precisely forecast a 31% move gives the corresponding buy setup a credibility most generic TA calls simply do not carry. Retail DOGE holders who watched from the sidelines through the May drawdown now have a named, timestamped signal to weigh.
The 3-day chart does not lie often. When it does, the damage is trackable.
The Number Behind the Setup
The TD Sequential works by counting nine consecutive closes in the same direction relative to four sessions prior. Once nine print, the indicator signals trend exhaustion. On the 3-day DOGE chart, that ninth candle has printed at the $0.0878 level, with the buy triangle visible in Martinez’s shared chart.
Since that trigger, Dogecoin is up 8% according to Martinez’s update posted on X. That early response is in line with how the sell-side signal behaved: it did not reverse in one session, it built directionally over time.
Eight percent in the days following a buy signal is not nothing. It is a start.
Open interest in DOGE stood above $1.03 billion as price action tightened around the $0.087 to $0.09 range, per data tracked by Coinglass as of the week of June 9, 2025. The first resistance traders are watching sits near $0.096. A daily close above that level would mark the first clean structural break since the May decline.
Where the Signal Breaks Down
The TD Sequential does not guarantee direction. It signals exhaustion. The difference matters. A buy setup at $0.0878 tells traders sellers may be running low on steam, not that buyers are ready to sprint. Confirmation would require price to hold support and push through the $0.096 resistance with volume behind it.
Martinez himself noted the dependence on Bitcoin’s trajectory in an accompanying X post. DOGE has tracked BTC closely through the May correction. If Bitcoin fails to sustain its recovery and rolls back below key short-term support, the buy signal on DOGE could stall before the $0.096 level is tested.
The tool called the drop. It is now calling the other side. That does not make it certain.
The TD Sequential buy at $0.0878 is logged. Whether price follows is the next question.
