In recent market developments, Dogecoin is on the verge of reaching a pivotal point with its price movements. According to a detailed analysis on the TradingView platform, Dogecoin is nearing its first weekly golden cross in four years. This technical pattern, characterized by the 50-week moving average crossing above the 200-week moving average, is exceptionally rare for Dogecoin. Historically, the golden cross is recognized as one of the most reliable bullish indicators, suggesting that Dogecoin may be preparing for a significant price increase.
Dogecoin’s Journey Towards a Weekly Golden Cross
Through a comprehensive technical analysis of Dogecoin’s price action, it’s evident that a golden cross is forming in both the weekly and daily candlestick timeframes. Notably, the golden cross is closer to realization on the weekly candlestick timeframe. This occurrence marks the first time since 2021 that such a golden cross is materializing for Dogecoin.
Currently, Dogecoin’s price is positioned just above the 200-week moving average. It is crucial for the cryptocurrency to maintain this level to ensure the 50-week moving average gains enough momentum to surpass the 200-week benchmark. Should Dogecoin sustain its position, it could pave the way for a significant price surge in the coming months. Considering that Dogecoin’s price has more than doubled since the start of 2024, the establishment of a golden cross might provide the necessary boost for a formidable parabolic rally before the year’s end.
Historically, Dogecoin last experienced a weekly golden cross in January 2021, when it traded at a humble $0.00317. This technical indicator coincided with the onset of a remarkable bull run across the cryptocurrency market, propelling Dogecoin into the spotlight during the peak of the meme coin frenzy. By the conclusion of this rally, Dogecoin had achieved an astonishing 22,980% increase over four months, reaching an all-time high of $0.7316.
Assessing the Potential for Another Dogecoin Rally
The question on everyone’s mind is whether Dogecoin can replicate this extraordinary rally with the upcoming weekly golden cross. If the current setup echoes the bullish momentum seen in 2021, Dogecoin might break through multiple price resistances by the end of 2024 and the early months of 2025, possibly establishing a new all-time high.
When it comes to setting a price target, the TradingView analyst refrained from specifying exact figures, indicating that the market could explore new heights following the golden cross. However, realistically speaking, Dogecoin might be poised for a rally of at least 200% in the wake of a weekly golden cross.
Despite recent struggles to maintain a position above $0.14, Dogecoin is currently trading at $0.138. A 200% rally would position Dogecoin near $0.42, contingent upon its ability to hold above $0.14 and sustain momentum above the 200-week moving average.
