This Dogecoin Indicator Could Signal a 7000% Rally in DOGE Price

Analyst Mikybull Crypto pointed out a bullish indicator for Dogecoin (DOGE) in a tweet. He highlighted the occurrence of a golden cross on Dogecoin’s weekly chart. 

Moreover, this indicator could signify a massive price rally similar to one observed in a previous cycle. Per Mikybull, Dogecoin rallied nearly 7,000% after the last golden cross. This hints that the latest signal might indicate a similar trajectory for the token.

The golden cross is a widely regarded bullish signal. It occurs when a shorter-term MA crosses above the one for the longer-term. On Dogecoin’s weekly chart, the 50-week MA (represented by a blue line) has crossed above the 200-week one (red line), signaling this event. 

Historically, this formation has often indicated an uptrend, potentially setting up $DOGE for a price increase. The previous golden cross for Dogecoin in 2021 triggered a sharp rally from around $0.002 to a peak near $0.73. 

This sharp rise was accompanied by high trading volumes, underscoring a strong bullish phase that spanned several months.

Price Movements and Trends Since the Golden Cross

Since the recent cross, Dogecoin’s price has been in an uptrend. The meme coin trades around $0.4039, according to CoinGecko data at publication. The token has also seen a 44.48% increase in the past day and a 144.13% rise over the past week. 

The chart shows Dogecoin consolidating within an ascending channel, with the price following a rising trendline that provides support during pullbacks. This trendline has proven to be a key support level, helping DOGE sustain its gains and possibly setting the stage for another upward push.

Read also: Bitcoin Whales Accumulate as BTC Price Makes History

Support and Resistance Zones Indicate Key Levels

Dogecoin’s price movements are structured within a channel bounded by support and resistance zones. The lower trendline acts as dynamic support, supporting price stability during consolidations. 

On the upper end, the channel’s boundary serves as resistance, with a historical resistance point near $0.716. If Dogecoin’s price breaks above this boundary, it could signal the beginning of a stronger rally, potentially leading to the gains projected by Mikybull.

The presence of a rising price channel in Dogecoin’s chart reinforces the potential for further gains. If the price holds above the lower boundary of the channel and manages to break past the upper boundary, it may reach the $0.70 region once again. This aligns with the patterns seen in Dogecoin’s 2021 rally, suggesting that history could repeat itself.

Follow us on X (Twitter)CoinMarketCap and Binance Square for more daily crypto updates.
Get all our future calls by joining our FREE Telegram group.

We recommend eToro

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more
Active user community and social features like news feeds, chats for specific coins available for trading.
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
intelligent crypto
How are  regular people making returns of as much as 70% in a year with no risk?  By properly setting up a FREE Pionex grid bot - click the button to learn more.
Crypto arbitrage still works like a charm, if you do it right! Check out Alphador, leading crypto arbitrage bot to learn the best way of doing it.

Tags:

Samuel Munene
Samuel Munene

Samuel is a vesatile and seasoned content editor with a sharp eye for detail and a passion for writing. Web3 techonology is the future! With massive experience in the publishing industry, I specialize in refining and enhancing written material to ensure clarity, coherence, and engaging narratives.

CaptainAltcoin
Logo