The world’s largest meme coin Dogecoin (DOGE) has been organising the muse of an upcoming mega rally, as quickly because the cryptocurrency market resumes its upward trajectory. The chart for the Dogecoin price reveals that the altcoin is approaching the a lot common ‘Golden Cross’ that seeks to reward long-term buyers.
The Dogecoin Golden Cross Pattern
As of press time, the Dogecoin (DOGE) worth is buying and selling at $0.145 with a market cap of $20.92 billion. It continues to be buying and selling with 85% positive aspects for the reason that starting of the yr. Taking a broader view, regardless of the latest correction prior to now 4 days, the general upward pattern stays intact. Also, this week earlier, we additionally witnessed robust Dogecoin whale activity happening available in the market.
Upon nearer examination, there’s much more trigger for optimism: The 50-week easy shifting common (SMA) of the token’s spot worth is presently ascending. If this trajectory continues, it could quickly intersect with the 200-week SMA within the upcoming weeks.
This convergence would create a golden cross, a major occasion not seen in Dogecoin since early 2021. During that earlier prevalence, DOGE launched into a exceptional rally, reaching its all-time excessive of over $0.73 per coin simply 4 months later.
In simple phrases, if a golden cross varieties, it means that newer patrons are seeing earnings quicker than long-term holders, who endured slower efficiency in earlier days. For merchants, this typically signifies a possible shift to a bullish market pattern and is interpreted as a powerful sign to purchase, signaling the tip of a bearish part and the beginning of a bullish one.
The preliminary constructive indication for Dogecoin’s worth occurred when it surpassed its 200-week SMA in March, leading to a greater than 70% surge inside per week. This motion contributed to the upward trajectory of the SMA 200, breaking its earlier stagnation. As famous, if the anticipated Golden Cross happens, it will be the primary in over three years.
DOGE Eyeing 8000% Rally?
The final golden cross, occurring in January 2021, preceded a exceptional surge in Dogecoin’s worth, catapulting it from $0.0096 to an all-time excessive surpassing $0.73 by May of the identical yr—an astonishing improve of almost 8,000%. If historical past repeats, we are able to see an identical surge going forward.
However, as many are conscious, this surge was adopted by a pointy decline of 90% within the months that adopted. Subsequently, Dogecoin stabilized, buying and selling between $0.05 and $0.10 from May 2022 to February 2024.
The introduced content material might embrace the private opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any accountability on your private monetary loss.
