Dogecoin (DOGE), the top meme cryptocurrency in the market, is showing a positive trend. This is evident from a ‘golden cross’ pattern on its technical charts.
Previously, this pattern signaled a major price boost in early 2021. Currently, DOGE is valued at $0.1438, a 4.70% drop from May 10. However, it has shown impressive growth this year, with a 60.32% increase, far outgrowing Bitcoin (BTC), which has seen a 43.565% rise.
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Dogecoin’s potential golden cross
The 50-week simple moving average (SMA) of Dogecoin’s price is rising, and it looks set to overtake the 200-week SMA. This could mean a “golden cross” is about to form. This exciting event hasn’t happened since early 2021, and the last time it did, Dogecoin went on a serious price hike – soaring to a record price of over $0.73. That was a staggering 8,000% increase!
A golden cross signals that new investors are growing more rapidly than long-term. This often indicates a shift from a market that’s dropping (bearish) to a market that’s on the rise (bullish). Dogecoin began its journey towards this golden cross when its March price skyrocketed by 70% in a week. This event took Dogecoin above its 200-week SMA. If this golden cross does occur, it will be Dogecoin’s first in over three years.
Yet, the last ‘golden cross’ of 2021 brought significant ups and downs. Firstly, it caused a massive price rise, followed by a sharp 90% drop. From May 2022 to February 2024, prices finally settled between $0.05 and $0.10. This underlines the unpredictability of investing in cryptocurrencies, especially meme coins like DOGE, which heavily respond to public opinion and speculative trades.
Compared to the favorable financial conditions of 2021, today’s economic environment has higher interest rates and more geopolitical tensions. These factors may impact speculative investments differently.
Renowned crypto analyst World Of Charts indicates that Dogecoin is nearing a crucial falling trendline despite some hurdles. This could lead to a breakout, potentially causing a 100% increase in its price, setting a target at around $0.29.
Approaching Towards Descending Trendline Incase Of Breakout Expecting Solid Bullish Rally Towards 0.27-0.30$ In Coming Days#Crypto #Doge pic.twitter.com/zWOgcL6svB
— World Of Charts (@WorldOfCharts1) May 10, 2024
This upbeat forecast resonates with traders who see moving average crossovers as crucial hints. As Dogecoin’s 50-week SMA climbs, it points towards possible chances for those in search of brief-term gains. The anticipated golden cross offers a positive outlook for Dogecoin; however, the unpredictable past after such events suggests the need for caution.
Investors are advised not just to depend on technical factors but also to check the overall economic condition and their risk capacity. Understanding potential profits and losses is crucial for a well-rounded investment strategy.
As suggested by World Of Charts, Dogecoin’s potential to reach another ‘golden cross’ could ignite a significant 100% upswing. However, due to this market’s unpredictable nature, it’s wise to tread with caution. Remember, historical trends don’t always predict future outcomes.
Related: Dogecoin Sees 3.20% Dip, but MarketVector’s Meme Coin Index Offers Silver Lining
Takeaway
It’s important to understand that each indicator in the crypto market uses its own rules to signal a Buy, Sell, or Neutral rating. The label’s color also provides an easy visual guide: gray for neutral, green for Buy or Strong Buy, and red for Sell or Strong Sell.
The ‘golden cross’ pattern in Dogecoin’s market might just offer a golden opportunity for a big price spike, possibly doubling its value. According to data from Benzinga Labs on the SMA, there’s a good chance that Dogecoin’s value could go up a lot, boosting its current market value of $50.7 billion.
If you’re an investor or just keen to know more, you can check out the MA rating, oscillator rating, or their average. These markers can guide you in your crypto decisions. For example, the Shiba Inu RSI score is now 33.3, indicating good trading chances.
Remember, though, that, like with all investments, careful research and assessment are key before investing. By doing your homework, you could potentially benefit from this predicted spike in Dogecoin’s value.
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