Dogecoin (DOGE), the beloved meme coin, is making headlines once again as it shows signs of a potential golden cross formation. According to crypto analyst Trader Tardigrade, recent activity surrounding DOGE’s 10-week weighted moving average (WMA) suggests a possible shift in the market landscape for this iconic cryptocurrency.
Understanding the Golden Cross
In technical analysis, a golden cross occurs when a short-term moving average crosses above a long-term moving average, often signaling a bullish trend. Trader Tardigrade’s analysis sheds light on significant moments in DOGE’s price movement, particularly on the weekly chart. Historically, DOGE encountered two instances in May and July 2024 where it briefly rose above the 10 WMA, only to retreat into a downward trend. These instances, referred to as false breaks, indicate that the temporary bullish sentiment lacked the necessary support to maintain higher prices.
However, recent developments hint at a changed scenario. Tardigrade’s tweet points to a breakout followed by a confirmation candle, a crucial technical signal that suggests the breakout’s potential strength and sustainability. Following this, DOGE retested former resistance levels, which are now acting as support, indicating a notable resilience in the market.
The Implications of Recent Movements
The sequence of breakout, confirmation, retest, and upward continuation implies that DOGE may be entering a new bullish phase. Such movements reflect increased trader confidence, suggesting that DOGE might be undervalued and poised for further gains. Currently, Dogecoin trades slightly above the 200-week moving average, a critical level for the 50-week average to gain momentum. Maintaining this position could pave the way for significant price increases in the coming months.
Since early 2024, Dogecoin’s value has more than doubled, and achieving a golden cross may trigger a robust parabolic rally before the year ends. This scenario draws parallels to January 2021 when Dogecoin experienced its last weekly golden cross at a price of just $0.00317, coinciding with a major bull run in the crypto market. During that explosive rally, Dogecoin skyrocketed by an astonishing 22,980% over four months, reaching an all-time high of $0.7316.
Looking Ahead: Could History Repeat Itself?
If current conditions replicate the bullish trends of 2021, Dogecoin may be on the verge of another remarkable ascent. Analysts speculate that this momentum could enable the cryptocurrency to surpass multiple resistance levels by late 2024 and early 2025, potentially establishing a new all-time high.
Also Read: Dogecoin Surges 4% Amid 2% Weekly Dip – Can It Break $0.144 And Outshine Rivals?
While a TradingView analyst noted that no specific price targets are set post-golden cross, the upside potential remains significant. The market could witness a minimum 200% rally following a weekly golden cross, underscoring the substantial upside potential for Dogecoin.
As Dogecoin continues to navigate through these critical technical signals, traders and enthusiasts alike are watching closely. With a potential golden cross on the horizon, the future looks promising for DOGE. Whether it can replicate the explosive gains of its past remains to be seen, but the current signs of resilience and momentum are certainly encouraging for investors eager to see where this meme coin journey will lead next.
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.
About The Author
