The DOGE price pattern that foreshadowed the early 2021 surge appears to be reappearing.
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*DOGE’s weekly average price appears poised to confirm a bullish golden cross.
*The last golden cross in early January 2021 heralded an 8,000% price surge.
Dogecoin (DOGE), the world’s largest meme-fueled cryptocurrency by market cap, appears to be heading for a repeat of the bullish “golden cross” technical pattern that heralded its early 2021 surge.
DOGE, which has a market value of about $22 billion, has had an outstanding year, with its price surging more than 70%, far outstripping the nearly 50% gain in the largest cryptocurrency, bitcoin (BTC), according to CoinDesk.
The 50-week simple moving average (SMA) of the meme token spot price is now trending up and is expected to cross above the 200-week SMA in the coming weeks, confirming a golden crossover. In other words, near-term price momentum may soon outperform long-term momentum, potentially evolving into a long-term bullish trend.
Momentum traders often use moving average crossovers as part of a structured approach to identify entry and exit points in the market.
The 50-week SMA is trending northward and looks set to move above the 200-week SMA, confirming a golden crossover in the coming weeks.
DOGE price broke above the 200-week MA in March, breaking out of a long period of sideways consolidation and has since established a foothold above the critical average.
The upcoming golden cross would be the first in more than three years. The last one was in early January 2021, heralding a four-month rally that saw Binance’s price surge more than 8,000% to a record 76 cents.
That said, past data is no guarantee of future results. This is especially true in the case of moving average crossovers, which tend to lag behind price and have been known to trap traders on the wrong side of a move in traditional markets.
Additionally, memecoins like DOGE lack real-world use cases and are primarily driven by speculation, which makes them more sensitive to fiat liquidity conditions and global interest rate expectations.
DOGE’s run in early 2021 came at a time when global interest rates were near or below zero, catalyzing unprecedented risk-taking in all corners of financial markets. That is no longer the case, with interest rates in the United States, the world’s largest economy, at multi-year highs above 5%.
