The world’s largest meme coin Dogecoin (DOGE) has been setting up the foundation of an upcoming mega rally, as soon as the cryptocurrency market resumes its upward trajectory. The chart for the Dogecoin price shows that the altcoin is approaching the much popular ‘Golden Cross’ that seeks to reward long-term investors.

The Dogecoin Golden Cross Pattern

As of press time, the Dogecoin (DOGE) price is trading at $0.145 with a market cap of $20.92 billion. It is still trading with 85% gains since the beginning of the year. Taking a broader view, despite the recent correction in the past four days, the overall upward trend remains intact. Also, this week earlier, we also witnessed strong Dogecoin whale activity taking place in the market.

Upon closer examination, there’s even more cause for optimism: The 50-week simple moving average (SMA) of the token’s spot price is currently ascending. If this trajectory continues, it may soon intersect with the 200-week SMA in the upcoming weeks.

This convergence would create a golden cross, a significant event not seen in Dogecoin since early 2021. During that previous occurrence, DOGE embarked on a remarkable rally, reaching its all-time high of over $0.73 per coin just four months later.

In straightforward terms, if a golden cross forms, it suggests that newer buyers are seeing profits faster than long-term holders, who endured slower performance in previous days. For traders, this often indicates a potential shift to a bullish market trend and is interpreted as a strong signal to buy, signaling the end of a bearish phase and the start of a bullish one.

The initial positive indication for Dogecoin’s price occurred when it surpassed its 200-week SMA in March, resulting in a more than 70% surge within a week. This movement contributed to the upward trajectory of the SMA 200, breaking its previous stagnation. As noted, if the anticipated Golden Cross occurs, it would be the first in over three years.

DOGE Eyeing 8000% Rally?

The last golden cross, occurring in January 2021, preceded a remarkable surge in Dogecoin’s value, catapulting it from $0.0096 to an all-time high surpassing $0.73 by May of the same year—an astonishing increase of nearly 8,000%. If history repeats, we can see a similar surge going ahead.

However, as many are aware, this surge was followed by a sharp decline of 90% in the months that followed. Subsequently, Dogecoin stabilized, trading between $0.05 and $0.10 from May 2022 to February 2024.

The post Dogecoin (DOGE) Price Eyes ‘Golden Cross’, A Mega Rally ahead? appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am