According to U.Today, the cryptocurrency market is closely monitoring a possible significant technical formation for Dogecoin's price, a moving average crossover on its weekly chart. The nature of this crossover will determine if it's a death cross, a bearish signal, or a golden cross. A golden cross happens when a shorter-term moving average, usually the 50-day moving average, crosses above a longer-term moving average, like the 200-day moving average. This bullish signal is often seen as a strong sign of upward momentum and potential price increases.
In the case of Dogecoin, the 50-week SMA is trending upwards and seems likely to move above the 200-week SMA, which could result in a golden cross formation in the coming weeks. Traders are anticipating a golden cross, but they need to observe the nature of the crossing to confirm this. Dogecoin's path towards this potential crossover has been characterized by a series of highs and lows. After a steady drop since May 6 from highs of around $0.168, the dog-themed coin has demonstrated resilience, finding support around the $0.142 level. At the time of writing, Dogecoin was trading down 4.68% in the last 24 hours to $0.144 as the crypto market faced selling pressure.
The last time Dogecoin experienced a weekly golden cross was in early January 2021, leading to an impressive 7,996% price increase over the next four months. Dogecoin later reached an all-time high of $0.737 on May 8, 2021. While past performance is not a guarantee of future results, the possibility of another golden cross has certainly piqued the interest of the DOGE community. For traders, the golden cross is a signal to watch closely, as it could indicate the start of a new uptrend. However, it's crucial to approach such indicators with caution, as they can sometimes lead to false signals, trapping traders on the wrong side of the market.
