Analyst Mikybull Crypto pointed out a bullish indicator for Dogecoin (DOGE) in a tweet. He highlighted the occurrence of a golden cross on Dogecoin’s weekly chart.
Moreover, this indicator could signify a massive price rally similar to one observed in a previous cycle. Per Mikybull, Dogecoin rallied nearly 7,000% after the last golden cross. This hints that the latest signal might indicate a similar trajectory for the token.
The golden cross is a widely regarded bullish signal. It occurs when a shorter-term MA crosses above the one for the longer-term. On Dogecoin’s weekly chart, the 50-week MA (represented by a blue line) has crossed above the 200-week one (red line), signaling this event.
The majority here don't seem to understand the implication of this golden cross that just occurred on $DOGE.Last cycle, dogecoin rallied almost 7,000% after the golden cross. pic.twitter.com/K0vBRQGrSs
— Mikybull Crypto (@MikybullCrypto) November 12, 2024
Historically, this formation has often indicated an uptrend, potentially setting up $DOGE for a price increase. The previous golden cross for Dogecoin in 2021 triggered a sharp rally from around $0.002 to a peak near $0.73.
This sharp rise was accompanied by high trading volumes, underscoring a strong bullish phase that spanned several months.
Price Movements and Trends Since the Golden Cross
Since the recent cross, Dogecoin’s price has been in an uptrend. The meme coin trades around $0.4039, according to CoinGecko data at publication. The token has also seen a 44.48% increase in the past day and a 144.13% rise over the past week.
The chart shows Dogecoin consolidating within an ascending channel, with the price following a rising trendline that provides support during pullbacks. This trendline has proven to be a key support level, helping DOGE sustain its gains and possibly setting the stage for another upward push.
Read also: Bitcoin Whales Accumulate as BTC Price Makes History
Support and Resistance Zones Indicate Key Levels
Dogecoin’s price movements are structured within a channel bounded by support and resistance zones. The lower trendline acts as dynamic support, supporting price stability during consolidations.
On the upper end, the channel’s boundary serves as resistance, with a historical resistance point near $0.716. If Dogecoin’s price breaks above this boundary, it could signal the beginning of a stronger rally, potentially leading to the gains projected by Mikybull.
The presence of a rising price channel in Dogecoin’s chart reinforces the potential for further gains. If the price holds above the lower boundary of the channel and manages to break past the upper boundary, it may reach the $0.70 region once again. This aligns with the patterns seen in Dogecoin’s 2021 rally, suggesting that history could repeat itself.
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