Dogecoin has triggered a TD Sequential buy signal on its daily chart as the price approaches $0.095, marking a potential shift in market dynamics. The signal emerges after prolonged selling pressure that has gradually diminished over recent weeks. The cryptocurrency has declined steadily since its September peak. Recent price action displays shorter candle bodies and reduced momentum, indicating possible seller fatigue. However, technical analysts warn that this development does not signal a trend reversal. At press time, DOGE trades near $0.09835 following a 0.08% decline in the past 24 hours. This bounce reflects a reaction to established support levels rather than a fundamental change in market structure. Price Remains Trapped Within Descending Channel The asset continues moving within a descending regression channel that has governed price action for several months. This pattern limits upside potential while providing structural boundaries for trading activity. Support currently holds at $0.080, a zone where previous selloffs lost momentum. This level represents critical defense for bulls attempting to prevent further deterioration. Above current levels, resistance sits at $0.117. This threshold has rejected multiple recovery attempts since November. Traders view this level as essential for any sustainable reversal. Breaking above it could open the path toward $0.153, which aligns with the channel's upper boundary and previous distribution zones. The TD Sequential indicator operates as a momentum tool that identifies potential exhaustion points. While useful for timing entries, it does not override prevailing trend direction. The signal suggests reduced selling intensity rather than imminent bullish control. On-Chain Metrics Point to Accumulation Behavior Spot Taker Cumulative Volume Delta remains positive despite extended price weakness. Aggressive buy orders continue exceeding sell orders, demonstrating persistent demand at lower price levels. This metric reveals market participants are absorbing available supply rather than liquidating positions. The pattern contrasts sharply with panic selling episodes where CVD typically turns sharply negative. Buyers are not aggressively pushing prices higher. Instead, they enter positions methodically as sellers reduce activity. This dynamic supports the notion of quiet accumulation through absorption rather than speculative enthusiasm. Exchange netflow data reinforces this narrative. DOGE recorded approximately $7.7 million in outflows recently. Tokens leaving exchanges during weakness suggests holders are moving assets to cold storage rather than preparing for distribution. Reduced exchange supply limits immediate selling pressure. However, these flows do not confirm aggressive institutional accumulation. They simply indicate diminished willingness to sell into current price levels. Combined with positive CVD readings, these conditions reduce the probability of forced liquidation cascades. Absent new catalytic selling events, downside acceleration appears less likely from current levels. Open Interest rose over 5% to approximately $1.04 billion while price remains compressed. This increase indicates traders are adding leveraged positions near support rather than closing exposure. Rising OI without a directional breakout typically amplifies volatility risk. Both long and short positions appear active, suggesting market participants anticipate significant movement. The current positioning creates elevated liquidation sensitivity. A decisive break above resistance or below support could trigger rapid, leverage-driven price expansion in either direction. Funding rates remain near neutral, suggesting a balance between bulls and bears. Neither side has established clear dominance, contributing to range-bound conditions.
