Dogecoin (DOGE) Price Eyes ‘Golden Cross’, Massive Rally Ahead?

The last golden cross occurred in January 2021, following which Dogecoin’s value surged significantly, gaining close to 8,000%.

The world’s largest meme coin, Dogecoin (DOGE), has laid the foundation for an upcoming massive rally once the cryptocurrency market resumes its upward trajectory. The Dogecoin price chart shows that the altcoin is approaching the popular “golden cross” designed to reward long-term investors.

Dogecoin Golden Cross Pattern

At press time, Dogecoin (DOGE) is trading at $0.145 with a market cap of $20.92 billion. The stock is still trading with an 85% gain since the beginning of the year. From a broader perspective, the overall uptrend remains intact despite the recent four-day pullback. Moreover, earlier this week, we also witnessed strong Dogecoin whale activity taking place in the market.

Upon closer inspection, there is even more reason for optimism: the 50-week simple moving average (SMA) of the coin’s spot price is currently rising. If this trajectory continues, it could soon intersect the 200-week moving average in the coming weeks.

This convergence would form a golden cross, a major event that has not occurred in Dogecoin since the beginning of 2021. In the last event, Dogecoin began a remarkable rally that reached an all-time high of over $0.73 per coin just four months later.

In short, if a golden cross forms, it indicates that new buyers are seeing profits faster than long-term holders, who were slower to perform in the previous days. For traders, this often indicates that the market trend may turn bullish and is interpreted as a strong buy signal, marking the end of the bearish phase and the beginning of the bullish phase.

The first positive signs for the price of Dogecoin came when it broke through the 200-week moving average in March, resulting in a surge of more than 70% in a week. This move pushed the SMA 200 index to an upward trajectory, breaking the previous stagnation. As mentioned earlier, if the expected golden cross occurs, it will be the first time in more than three years.

DOGE Eyeing 8000% Rally?

The last golden cross occurred in January 2021, following which Dogecoin’s value surged significantly from 0.0096 USD jumped to an all-time high of over $0.73 in May of the same year, a staggering increase of nearly 8,000%. If history repeats itself, we could see a similar surge.

However, as many know, this surge was followed by a sharp 90% drop in the following months. Dogecoin then stabilized, trading between $0.05 and $0.10 from May 2022 to February 2024.

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