When Dogecoin last experienced a ‘golden cross’ was in January 2021, it witnessed an impressive 8,000% surge in value. Currently, Dogecoin, the leading meme coin globally, seems to be gearing up for a significant rally when the cryptocurrency market rebounds. Traders and investors who hold onto their Dogecoin investments for an extended period may find this news encouraging.
The current price of Dogecoin (DOGE) stands at $0.145, boasting a market cap of $20.92 billion and has seen an 85% increase since the beginning of the year. Although there has been a recent decline in the last four days, the overall trend remains positive. Notably, this week saw a substantial activity from Dogecoin whales in the market.
Further analysis reveals optimistic indicators with the 50-week simple moving average (SMA) of DOGE’s spot price showing an upward trajectory. This could potentially lead to a convergence with the 200-week SMA in the near future, creating a ‘golden cross’ event that Dogecoin has not seen since early 2021. The last time a 'golden cross' occurred, Dogecoin soared to an all-time high of over $0.73 per coin four months after its inception.
In essence, a ‘golden cross’ indicates that new investors are reaping profits faster than long-term holders who previously had slower gains. For traders, this often signals a shift towards a bullish market trend and serves as a strong buy signal, signifying the end of a bearish phase and the beginning of a bullish one.
The initial positive sign for Dogecoin's price occurred when it exceeded its 200-week SMA in March, resulting in a more than 70% surge within a week. This movement prompted the upward shift of the SMA 200, breaking its prior stagnation. If the anticipated ‘golden cross’ materializes, it would be the first in over three years.
The previous ‘golden cross’ for Dogecoin transpired in January 2021, leading to a remarkable surge in value, propelling Dogecoin to an all-time high surpassing $0.73 by May of the same year, signifying an impressive increase of nearly 8,000%. Should history repeat itself, a similar surge could be expected in the future after witnessing the 'golden cross'.
It is essential to note that the information provided in this article is for informational purposes only and should not be interpreted as legal, tax, investment, financial, or any other form of advice.
