Dogecoin (DOGE) recently showed signs of golden cross formation. According to cryptocurrency analyst Trader Tardigrad, activity around DOGE’s 10-week weighted moving average (WMA) signals a possible change in the market landscape for the famous meme coin.
#Dogecoin is running about 10 wma (weighted moving average), which suggests that: $Doge Doing something different 🔥
On the weekly chart, there were two false breaks 🔴 in May and July 2024, and the downtrend continued after that ⬇️
Now we are seeing signs of ⚪ breakout, 🟢 follow through… pic.twitter.com/ym2bJmBU0A
— Trader Tardigrade (@TATrader_Alan) October 26, 2024
Trader Tardigrade’s analysis reveals key moments in DOGE’s recent price movement on the weekly chart. The coin briefly exceeded the 10 WMA twice in May and July 2024, but returned to a downtrend. These instances, called false breaks, often indicate that temporary bullish sentiment lacks sufficient support to higher prices.
Source: Trader Tardigrade
However, recent developments suggest a change in the scenario. Tardigrade’s tweet highlights the breakout, followed by a confirmation candle being lit. This is an important technical signal indicating the potential strength and sustainability of the breakout. Following this, DOGE retested its previous resistance level, now acting as support, and held its position, suggesting market resilience.
This series of breakouts, confirmations, retests, and continued gains suggests that DOGE may be entering a new bullish phase. Such moves signal strong confidence among traders and suggest that DOGE is undervalued and may be poised for further gains.
Dogecoin Eyes Golden Cross Rally
Dogecoin is currently trading just above its 200-week moving average, which is an important level towards the 50-week moving average to gain momentum. Holding this position could pave the way for significant price gains in the coming months. Since the beginning of 2024, Dogecoin has more than doubled in value, and the achievement of the Golden Cross could lead to a strong parabolic rally by the end of the year.
In January 2021, Dogecoin experienced its last weekly golden cross at a price of $0.00317. This technical indicator coincides with a bull run in major crypto markets and made Dogecoin a household name during the peak of the meme coin trend.
The subsequent rally saw Dogecoin soar 22,980% in four months to an all-time high of $0.7316. This dramatic increase highlighted the potential impact of the Golden Cross on the trajectory of the cryptocurrency.
If the current situation replicates the bullish trend of 2021, Dogеcoin could embark on another notable rally. Such momentum could lead to cryptocurrencies breaking through multiple resistance levels and reaching new all-time highs by the end of 2024 or early 2025.
According to TradingView analysts, no specific target price has been set after the Golden Cross, leaving room for future moves. Nevertheless, Dogecoin could experience at least a 200% rise following the weekly golden cross, suggesting significant upside potential.
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