Emily Walker
Dogecoin is experiencing significant growth, fueled by a resurgence in the market following the recent U.S. Presidential election results. This rise has enabled it to break through various robust resistance points and bullish patterns, potentially positioning the meme-inspired cryptocurrency for important price milestones.
Dogecoin’s Upward Movement Driven By A Classic Golden Cross
Investors and traders are increasingly speculating about Dogecoin’s short-term price movements. Market analyst Kevin has provided insights into the cryptocurrency’s price outlook after the formation of a crucial chart pattern.
After analyzing DOGE’s latest price trends, Kevin noted that the cryptocurrency has established a Classic Golden Cross on the weekly chart—an encouraging technical signal that typically indicates sustained upward movement ahead.
This pattern was bolstered by the 50-day Simple Moving Average (SMA) moving above the 200-day SMA, suggesting that further price increases are likely. This trend showcases Dogecoin’s recent price strength, driven by growing demand and favorable macroeconomic factors, boosting investor confidence.
As Dogecoin nears critical resistance levels, traders are closely watching its next movements, anticipating a possible significant rally in light of the Golden Cross pattern. Nevertheless, Kevin has warned of the potential for a price correction soon, indicating a possible change in market momentum.
Kevin recalls that four years earlier, DOGE also formed a bullish Golden Cross, which was followed by a temporary dip before it surged to new all-time highs. This history suggests a similar potential pathway for DOGE in the current cycle.
Given the possibility of a pullback based on previous trends, Kevin has encouraged investors to proceed with caution in the near term. The analyst also predicts that DOGE’s movements may align closely with Bitcoin’s trend, the leading cryptocurrency.
DOGE’s Price Trends Appear Positive
After a significant uptrend over the past week, DOGE has revisited the $0.28 mark, reinforcing its status as the top meme cryptocurrency. It has successfully surpassed important resistance, including the $0.26 level, which was seen as a pivotal point that could impede further gains.
With bullish momentum firmly in place and positive sentiment surrounding DOGE, it could see additional growth in the coming weeks, potentially reaching the sought-after $0.50 level or its historical peak of $0.73 from over three years ago. However, if the bulls cannot maintain the upward drive and the bears regain control, a minor retracement could occur, as noted by Kevin.