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A "golden cross" is approaching on the Dogecoin chart.
Dogecoin (DOGE), the world's largest meme cryptocurrency by market cap, is moving towards a "golden cross" technical pattern that heralds the volatile environment seen in early 2021.
DOGE, which has a market value of approximately $22 billion, according to CoinDesk data, has recorded a price increase of over 70% this year, surpassing the approximately 50% increase of the largest cryptocurrency, Bitcoin (BTC).
The 50-week simple moving average (SMA) of the Meme token's spot price is currently heading north and looks set to confirm the golden cross by moving above the 200-week SMA in the coming weeks. In other words, the token's short-term price momentum may soon outperform the long-term momentum and potentially develop into a long-term uptrend.
Momentum traders often use moving average crossovers as part of a structured approach to determining market entry and exit points.
The DOGE price broke out of a prolonged sideways consolidation by crossing its 200-week SMA in March and has since established a foothold above the critical average.
The upcoming golden cross had not been seen in more than three years. Last witnessed in early January 2021, the indicator heralded a four-month rally that saw prices listed on Binance rise by over 8,000% to 76 cents.
However, it should not be forgotten that past data is not a guarantee for the future.
Additionally, memecoins like DOGE are known for their lack of real-world use cases and are primarily driven by speculation. This makes them more sensitive to fiat liquidity conditions and global interest rate expectations.
