The last time Dogecoin saw a ‘golden cross’ was in January 2021. After that, its value skyrocketed by an incredible 8,000%.
Dogecoin (DOGE), the biggest meme coin globally, seems to be getting ready for a major rally when the cryptocurrency market starts going up again. Looking at the Dogecoin price chart, it’s heading towards something called a ‘Golden Cross,’ which is good news for people who hold onto their investments for a long time.
Dogecoin Price Analysis and Potential Golden Cross
As of now, Dogecoin (DOGE) is trading at $0.145, with a market cap of $20.92 billion, showing an 85% gain since the start of the year. Despite a recent downturn over the past four days, the overall trend remains upward. Earlier this week, there was notable activity from Dogecoin whales in the market.
A closer look reveals even more promising signs: the 50-week simple moving average (SMA) of DOGE’s spot price is on the rise. If this continues, it could soon intersect with the 200-week SMA in the coming weeks.
This potential convergence would create a golden cross, a significant event not seen in Dogecoin since early 2021. Back then, DOGE experienced a remarkable rally, reaching an all-time high of over $0.73 per coin just four months later.
DOGEUSD: TradingView
In simple terms, if a golden cross happens, it means newer buyers are seeing profits faster than long-term holders, who had slower gains before. For traders, this often signals a shift to a bullish market trend and is seen as a strong buy signal, indicating the end of a bearish phase and the start of a bullish one.
The first positive sign for Dogecoin’s price came when it surpassed its 200-week SMA in March, resulting in a more than 70% surge within a week. This movement helped push the SMA 200 upward, breaking its previous stagnation. If the anticipated golden cross happens, it would be the first in over three years.
Dogecoin’s Historical Golden Cross and Potential for Future Surge
The last golden cross for Dogecoin happened in January 2021, leading to a remarkable surge in its value. This surge propelled Dogecoin from $0.0096 to an all-time high exceeding $0.73 by May of the same year, marking an astonishing increase of nearly 8,000%. If history repeats itself, we may witness a similar surge in the future.
However, following this surge, there was a significant decline of 90% in the months that followed. Subsequently, Dogecoin stabilized, trading between $0.05 and $0.10 from May 2022 to February 2024.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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