Riding the Dogecoin Wave: Indicators of What’s Next
Dogecoin (CRYPTO: DOGE) has rebounded impressively this week, but the next question for traders is whether it can sustain its meteoric rise as the “king of memecoins” gains momentum.
What Happened: The dog-themed cryptocurrency has risen more than 9% in the past 24 hours, largely boosted by its “biggest” supporter Elon Musk. Elon Musk has pitched the idea of a so-called Department of Government Efficiency, commonly known as DOGE. ” during former President Donald Trump’s campaign.
The recent rally brings Dogecoin’s weekly gain to over 24% and monthly gain to 32%.
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Brantz, a widely followed crypto trader, said Dogecoin’s strongest moves typically occur at the end of a cycle after Bitcoin (CRYPTO:BTC) reaches an all-time high.
The trader added: “It’s no surprise that we’re going to go from rock bottom to 30x within a few weeks.” “Yes, there are new flashy memes now, but dismissing Doge as dead is a big mistake, me.”
About $Doge So basically since its inception, it has always performed the hardest and most vertically, such as going 30x from its lows within a few weeks towards the end of the cycle after Bitcoin is usually already trading at ATH. Masu.
And if you weren’t there all along… pic.twitter.com/PTBMizjo1p
— Bruntz (@Bruntz_Capital) October 17, 2024
Dogecoin’s bullish potential was also highlighted by well-known analyst Kevin, who said in a post on X, “Dogecoin’s weekly golden cross is imminent. It’s been 4 years.”
A golden cross is a technical chart pattern that indicates significant upside potential.
SEE ALSO: Dogecoin billionaires on the rise – Investors with over $1 million in Dogecoin revealed!
Why it matters: Several technical indicators have flashed bullish signals for Dogecoin, according to data from charting platform TradingView.
One of the most popular tools, the Moving Average Convergence Divergence (MACD) indicator, has issued a buy signal.
MACD is primarily used to measure the overall trend of an asset. A crossover between the signal line and the MACD line gives a trading signal.
Similarly, the momentum indicator, which compares the current price with the price several periods ago, shows a positive value, indicating bullish sentiment.
That said, as of this writing, the Relative Strength Index (RSI) is still neutral.
Furthermore, according to IntoTheBlock, net foreign exchange inflows into DOGE have declined by 63% in the past 24 hours, which may indicate a slowdown in selling pressure.
Price Trend: At the time of writing, Dogecoin was trading at $0.1348, up 10.53% in the past 24 hours, according to data from Benzinga Pro.
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This article, “Riding Dogecoin’s Wave: Indicators Point To What Could Happen Next” was originally published on Benzinga.com
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