Dogecoin (DOGE) investors could be on the verge of witnessing a significant price rally as the memecoin’s chart signals the potential formation of a ‘Golden Cross.’ This bullish technical pattern, known for indicating a strong upward trend, could propel DOGE to new heights in the coming weeks.
Over the past week, Dogecoin has already shown positive momentum, recording a 6% increase in value, according to CoinMarketCap. The upward trend continued, with DOGE prices climbing over 3% in the last 24 hours. As of the latest data, DOGE is trading at $0.1051, boasting a market capitalization exceeding $15 billion, which solidifies its position as the 9th largest cryptocurrency.
Crypto analyst Kevin highlighted a down channel pattern in DOGE’s chart on Twitter, suggesting that a breakout above this pattern could lead to a Golden Cross, sparking a long-term bull run. This potential shift has investors and analysts keeping a close watch on Dogecoin’s next moves.
Further analysis using Santiment’s data reveals that Dogecoin’s Market Value to Realized Value (MVRV) ratio has improved, indicating a possible bullish sentiment. Despite the positive price action, trading volume for DOGE has decreased, suggesting that investors are hesitant to trade at lower prices, which could impact the coin’s upward momentum.
The Network Value to Transactions (NVT) ratio has also increased, signaling that DOGE may be overvalued, which could lead to a price correction. However, technical indicators like the MACD (Moving Average Convergence Divergence) show the potential for a bullish crossover if the current rally continues.
The Chaikin Money Flow (CMF) also displayed a northward movement, while the Money Flow Index (MFI) hovered near the oversold zone, potentially increasing buying pressure on DOGE. Typically, a rise in buying pressure is followed by an increase in price.
Looking at Dogecoin’s liquidation levels, the analysis suggests that DOGE might reclaim the $0.11 level if liquidation increases, which would act as a resistance point. Conversely, if bearish trends take hold, DOGE could see a dip to $0.10 in the coming days.