Key Takeaways
- Dogecoin is approaching a golden cross for the first time in eight months, often a precursor to significant price moves.
- On-chain metrics and bullish technical indicators suggest DOGE is undervalued and entering an accumulation phase.
Dogecoin (DOGE) is poised for a technical breakout as it approaches its first golden cross in nearly eight months. A golden cross occurs when the short-term 20-day exponential moving average (EMA) crosses above the 50-day EMA—a bullish signal that previously preceded a massive 300% rally in late 2024.
Currently trading at $0.20 after a 5% 24-hour gain, DOGE appears to be emerging from a prolonged bearish phase. If the crossover confirms and momentum continues, bulls could target a breakout above the $0.25 resistance zone. However, holding the $0.17 support remains critical to sustaining the upward trend.
MVRV Ratio Shows DOGE in Accumulation Zone
Supporting the technical setup is Dogecoin’s Market Value to Realized Value (MVRV) ratio, currently sitting at -1.57%, according to on-chain data from Santiment. This metric tracks the average profit or loss of holders and can indicate whether an asset is overbought or undervalued.
Historically, MVRV readings between 0% and -25% signal undervaluation and investor accumulation. DOGE’s current position suggests the market may be primed for a bullish shift, aligning with the potential golden cross and renewed technical momentum.
Breakout From Falling Wedge Signals Trend Reversal
A closer look at the 4-hour chart reveals that Dogecoin has broken out of a falling wedge pattern—typically a strong reversal formation. This move is backed by rising bullish indicators: the Chaikin Money Flow (CMF) has pushed above the zero line, suggesting capital inflows, while the Awesome Oscillator (AO) has turned green, reflecting growing positive momentum.
Also Read: Dogecoin (DOGE) to $1 by September? Analyst Forecasts Major Breakout – Here’s Why
If the buying pressure continues, DOGE could climb to $0.26 in the short term. In a highly bullish case, the price may retest $0.30. However, a loss of momentum could result in a drop back toward $0.16.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
