Recent shifts in the market have led to the Dogecoin price nearing an important threshold within its moving averages. According to an analysis from the TradingView platform, Dogecoin is on the verge of its first weekly golden cross in four years.
This technical occurrence, where the 50-week moving average surpasses the 200-week moving average, is quite rare for Dogecoin. Notably, past patterns indicate that the golden cross serves as a powerful bullish signal, implying that Dogecoin’s price might be preparing for a significant upswing.
Dogecoin Price Set To Achieve Weekly Golden Cross
The technical review of Dogecoin’s price trajectory shows a golden cross forming on both the weekly and daily candlestick timelines. Fascinatingly, the golden cross is on the brink of realization on the weekly candlestick timeline. Moreover, this marks the first occurrence since 2021.
Currently, Dogecoin is trading slightly above the 200-week MA, and it is crucial to maintain this position to provide the 50-week MA the momentum needed to rise above. If Dogecoin can sustain this level, it would pave the way for a considerable price increase in the upcoming months. Considering that the value of Dogecoin has more than doubled since the beginning of 2024, achieving a golden cross could serve as additional fuel for a robust parabolic rally before the year’s end.
Historically, Dogecoin last experienced a weekly golden cross in January 2021, at a value of $0.00317. This technical signal aligned with the initiation of a remarkable bull market across the crypto sphere, propelling Dogecoin into the spotlight during the peak of the meme coin frenzy.
When the rally concluded, Dogecoin had achieved an astounding 22,980% increase in just four months, reaching an all-time high of $0.7316.
Can DOGE Duplicate This Rally With The Weekly Golden Cross?
Dogecoin may be on track for another remarkable surge if the current scenario replicates the bullish drive witnessed in 2021. Should a similar trend emerge, Dogecoin could surpass various price resistances by the end of 2024 and into early 2025, potentially establishing a new all-time high.
Regarding price projections, the TradingView analyst noted that no specific targets were established, meaning the market could be liberated after a golden cross. Nonetheless, realistically, Dogecoin might be poised for at least a 200% upswing with the establishment of a weekly golden cross.
In recent hours, Dogecoin has struggled again to maintain its position above $0.14 and is currently priced at $0.138. A 200% increase would position Dogecoin near $0.42, but this largely hinges on its ability to remain above $0.14 and sustain momentum above the 200-week moving average.
Featured image created with Dall.E, chart from Tradingview.com
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