Recent market dynamics have seen the Dogecoin price approaching a significant milestone in its moving averages. As pointed out by an analysis of the TradingView platform, Dogecoin is about to have its first weekly golden cross in four years.
This technical pattern, where the 50-week moving average crosses above the 200-week moving average, is very rare for Dogecoin. Interestingly, history shows the golden cross is one of the best bullish indicators, suggesting the Dogecoin price might be gearing up for a massive surge.
Dogecoin Price About To Make Weekly Golden Cross
Technical analysis of the Dogecoin price action has seen a golden cross brewing in both the weekly and daily candlestick timeframes. Interestingly, the golden cross is closer to fruition on the weekly candlestick timeframe. What’s more interesting is that this is the first time since 2021 that such a golden cross is happening.
Currently, the Dogecoin price is hovering just above the 200-week MA, and maintaining this position is essential to give the 50-week MA enough traction to push above. Should Dogecoin hold this level, it would set the stage for a substantial price surge in the months ahead. Given that the price of Dogecoin has more than doubled since the beginning of 2024, the completion of a golden cross could provide additional fuel for a stronger parabolic rally before the year ends.
Historically, Dogecoin last witnessed a weekly golden cross in January 2021, when it was trading at a modest $0.00317. This technical signal coincided with the start of a remarkable bull run across the crypto market, catapulting Dogecoin into the limelight during the height of the meme coin craze.
By the time the rally ended, Dogecoin had gone on a 22,980% run in four months to reach an all-time high of $0.7316.
Can DOGE Repeat This Rally With The Weekly Golden Cross?
Dogecoin could be positioned for another impressive run if the current setup mirrors the bullish momentum of 2021. If a similar momentum were to occur, this would see Dogecoin breaking past multiple price resistances before the end of 2024 and in the first few months of 2025, which in turn could lead to the creation of a new all-time high.
In terms of a price target, the TradingView analyst said there were no price targets, meaning the reins would be open after a golden cross. However, realistically, Dogecoin could be set for a rally at least 200% to the upside in the event of a weekly golden cross.
Dogecoin has failed again to keep a footing above $0.14 in the past 24 hours and is currently trading at $0.138. A 200% rally would place Dogecoin near $0.42, but this would largely depend on its ability to hold above $0.14 and sustain momentum above the 200-week moving average.
Featured image created with Dall.E, chart from Tradingview.com
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