Dogecoin rose 150% last week and surpassed the $0.40 mark, which has created a lot of excitement in the Dogecoin community as a 'Golden Cross' appeared on the Dogecoin chart.
This technical pattern often occurs before significant DOGE price increases, boosting bullish sentiment. Analysts predict that if Dogecoin closes this week above $0.18, it could follow a parabolic trend. In the past, Dogecoin has significantly increased after similar signals.
In the past 24 hours, the popular meme coin has risen by 40%. Dogecoin often rises quickly after forming a Golden Cross. For example, in the first cycle, Dogecoin increased by over 8,373%, and in the second cycle, Dogecoin rose by 18,376%.
As the chart shows, the Golden Cross recently occurred when Dogecoin broke through an important resistance level (the yellow line on the chart). For this reason, analysts believe another major price increase will occur.
Additionally, the general market sentiment around Dogecoin is largely optimistic, with a cryptocurrency 'whale' recently purchasing 200 million DOGE (worth about $45 million) and transferring it to an unknown wallet, indicating strong investor confidence.
The Impact of Social Media on Dogecoin
Most of this price increase comes from speculation about Elon Musk's comments on the government. Recently, he hinted that he would establish a 'Department of Government Efficiency' (DOGE), which has caused a lot of excitement in the cryptocurrency community. Traders believe that Musk will increase mainstream interest in Dogecoin, which will attract more retail investors.
Overall, traders and investors will closely monitor Dogecoin's price movements in the coming days. If this token closes above $0.18, it could be preparing for another parabolic price increase, repeating previous cycles. Market observers believe that DOGE will grow this time due to increased adoption and technological advancements.