Dogecoin’s “Golden Cross” pattern, historically followed by significant rallies, has reappeared on the weekly chart, suggesting potential gains.
Dogecoin, the iconic meme coin, is again captivating crypto traders as it forms a promising technical pattern known as a “Golden Cross.” This development has prompted speculation about the potential for another explosive rally, with past Golden Crosses yielding as large as 3,000% and 12,000%.
Dogecoin’s price has jumped 24% today alone, 84% in the past week, and 162% over the past 30 days, with 94% of its holders now in profit. Analysts are now watching closely to see if history might repeat itself.
Golden Cross Sparks Bullish Sentiment
The Golden Cross, a bullish pattern where the 50-day moving average (SMA) crosses above the 200-day SMA, has historically been a harbinger of rallies for Dogecoin. Crypto analyst Kevin highlighted on X that Dogecoin recently completed this formation on its weekly chart, a pattern often followed by substantial gains.
However, traders are cautious, warning that an initial pullback can sometimes follow the Golden Cross before any substantial upswing.
Crypto Daily Trade Signals also pointed out an “Inverse Head and Shoulders” pattern in Dogecoin’s chart, another bullish indicator that could drive further price movement.
Historically, this pattern has been linked with significant rallies, one of which saw Dogecoin’s price soar by 3,364% and another by over 12,000%. However, traders quickly note that Bitcoin’s market performance may heavily influence Dogecoin’s next moves, emphasizing that while indicators are favorable, patience and caution are warranted in the short term.
Increased market activity also supports the potential for another rally: IntoTheBlock data reveals a 128.2% increase in large transaction volumes, a 67.9% rise in daily active addresses, and a 137.6% surge in net flows to exchanges. Transactions over $100,000 rose from 1,150 to 2,234 within a day, signaling heightened interest and liquidity in Dogecoin.
Raoul Pal’s “Last Chance to Add” Zone
Global Macro Investor Raoul Pal weighed in on the bullish sentiment, calling this the “last chance to add” Dogecoin and other meme coins before a potential breakout. He anticipates that Dogecoin’s rally could drive broader gains across meme coins, adding to the optimism that has grown around Dogecoin’s recent achievements.
As Dogecoin approaches a critical weekly close, all eyes are on whether the latest Golden Cross could lead to another historic rally.
Why Dogecoin Could Be Set for Major Gains
Dogecoin’s recent surge might have more fuel than typical market trends. Elon Musk’s appearance at a Trump rally in Pennsylvania hints at a potential political alliance, increasing the possibility that Musk could secure a role in the upcoming administration. For Dogecoin, this connection is critical.
Musk has long been a major supporter of DOGE, previously changing his platform’s logo to a Shiba Inu. Speculation is also growing that he could head a new Department of Government Efficiency, referred to as D.O.G.E., which could keep Dogecoin in the spotlight and potentially drive more interest.
