Dogecoin (DOGE), the big brother of memecoin in the crypto market, seems to be heading towards a repeat of the bullish Golden Cross* technical pattern seen in the early 2021 price rally.
DOGE, which has a market capitalization of around $22 billion, has demonstrated outstanding performance this year, with a price increase of more than 70% and significantly outpacing bitcoin's (BTC) gain of nearly 50%.
DOGE's 50-week simple moving average (SMA) is currently trending up and looks set to surpass the 200-day SMA in the coming weeks, confirming the golden cross. In other words, short-term price momentum could soon outperform long-term bullish momentum, potentially developing into a sustained uptrend.
Trend traders frequently use moving average crossovers as part of a structured approach to identifying entry and exit points in the market.
DOGE price peaked at the 200-week SMA in March, breaking out of an extended sideways consolidation and has since established a foothold above the key average.
The upcoming golden cross will be the first in more than three years. The previous one, in early January 2021, heralded a four-month bull run that saw the price increase more than 8,000% to a record $0.76.
That said, past data does not promise future results. And that's especially true in the case of moving average crossovers, which tend to lag prices and are known to trap traders in the wrong direction in traditional markets.
Additionally, meme coins like DOGE lack real-world use cases and are primarily driven by speculation, which makes them more sensitive to fiat liquidity conditions and interest rate expectations. global decrease.
During DOGE's golden cross in early 2021, zero or negative interest rates in many countries spurred unprecedented risk-taking across all corners of the financial markets (period). cheap money). That's no longer the case, with interest rates in the US, the world's largest economy, at multi-year highs above 5%.
*Golden Cross is a popular technical expression in technical analysis. It occurs when a short-term moving average (e.g., 50 days) crosses above a long-term moving average (e.g., 200 days). This crossover creates a point where the short-term average price surpasses the long-term average price, creating a positive signal of a transition from a bearish to a bullish condition.
The Golden Cross pattern is often considered a strong buy signal in technical analysis, and it is often used by traders to determine market entry points in the hope that the price will continue to rise after this event occurred. However, like any other technical analysis tool, using the Golden Cross pattern requires combination with other factors and does not guarantee trading success.
Source: https://tapchibitcoin.io/dogecoin-doge-xuat-hien-mo-hinh-tang-gia-golden-cross.html