Ali Martinez, a highly respected crypto analyst, recently shared his optimistic views on Dogecoin ($DOGE), a leading cryptocurrency that gained fame as a memecoin.
To support his bullish stance on Dogecoin, Martinez used the Tom DeMark (TD) Sequential indicator. This indicator is a tool in technical analysis that evaluates a sequence of price data to identify possible shifts in market trends. Essentially, it looks at a series of price points over a specific period and provides signals that can indicate whether an asset is likely to experience a change in its current trend direction. According to Martinez, the TD Sequential has signaled a buying opportunity on Dogecoin’s weekly chart.
Martinez further stated that if Dogecoin can sustain a price above $0.062, it could lead to an increase to $0.070.
At the time of writing, DOGE is trading at around $0.0656, down 2.3% in the past 24-hour period.
Martinez also turned his attention to Chainlink ($LINK), a blockchain oracle network. He mentioned that LINK’s Market Value to Realized Value (MVRV) is suggesting a possible price decline.
The MVRV ratio is another metric used in technical analysis that compares an asset’s total market capitalization to its “realized” value. In simpler terms, it helps to gauge whether an asset is overvalued or undervalued by comparing its current market value to the value of transactions that have actually taken place.
Martinez cited data from analytics platform Santiment, noting that when LINK’s 30-day MVRV exceeds 20%, it has historically led to significant price corrections. The 30-day MVRV has recently crossed this threshold, indicating a potential downturn.
Lastly, Martinez discussed Axie Infinity ($AXS), a blockchain-based game. He indicated AXS appears ready for a price surge after establishing support at $4. In technical analysis, “support” refers to a price level where buying activity is sufficiently strong to prevent the price from declining further. Essentially, it acts as a floor that the asset’s price is unlikely to fall below. Martinez mentioned that selling pressure has diminished and a significant support level has been formed around this price point.
Last month, another analyst, Crypto Tony, who commands a following of over 300,000 on X, laid out his predictions for Dogecoin. According to Tony’s technical analysis, DOGE could see a significant price surge of 159% by April 2024, given its current trading price of $0.0656. He expects the cryptocurrency to reach around $0.17 by that time.