According to U.Today, Dogecoin (DOGE), the eighth largest cryptocurrency by market capitalization, is currently experiencing mixed signals from its technical indicators. A death cross has emerged on the daily charts, indicating potential bearish momentum, while a golden cross has appeared on the four-hour chart, suggesting a possible upward price movement in the short term.
In technical analysis, a death cross occurs when a short-term moving average, such as the 50-day moving average, crosses below a long-term moving average, like the 200-day moving average. This pattern is typically seen as a bearish signal, indicating potential price declines. Conversely, a golden cross happens when a short-term moving average crosses above a long-term moving average, often interpreted as a bullish signal suggesting upward price movement.
Dogecoin's daily chart recently displayed a death cross, with the 50-day moving average falling below the 200-day moving average. Despite this bearish outlook on the daily chart, the four-hour chart shows a different scenario. A golden cross has formed, with the short-term moving average crossing above the long-term moving average, indicating that Dogecoin may experience a price climb in the very short term.
Currently, Dogecoin is seeing a price rebound after declining for five consecutive days. At the time of writing, Dogecoin was up 3.03% in the last 24 hours, trading at $0.132. The emergence of both the death cross and the golden cross on different time frames reflects the mixed sentiment in the market, with both caution and optimism present among traders.
Some traders regard moving average crosses as lagging indicators, which often coincide with trend exhaustion and can trap investors on the wrong side of the market. Moving average studies frequently rely on historical data and tend to lag prices. For instance, a death cross could indicate the bottom of a bear market. This divergence in Dogecoin's price outlook highlights the importance of considering multiple time frames when analyzing the market.
