Dogecoin’s Golden Cross Approaching: Meme Coin Poised for Repetitive Uptrend?

Based on recent developments, it appears that Dogecoin (DOGE) is approaching a repetition of the bullish “golden cross” technical pattern that preceded its impressive surge during early 2021. Currently, the 50-week simple moving average (SMA) of DOGE’s spot price is increasing and is anticipated to cross above the 200-week SMA in the forthcoming weeks, signifying that short-term price momentum may surpass long-term momentum, potentially resulting in a protracted upward trend. Traders who utilize moving-average crossovers as part of a structured strategy for identifying entry and exit points in the market are frequent users of this technique. In March, DOGE broke free from a lengthy period of horizontal congestion and exceeded its 200-week SMA, solidifying its position above the crucial level. This would be the first golden cross in more than three years, following the one witnessed in early January 2021, which resulted in a four-month rally that culminated in a record price of 76 cents on Binance. Nonetheless, prior history does not guarantee future outcomes, especially regarding moving-average crossovers, which often trail behind price movements and have been known to ensnare investors on the incorrect side in conventional markets. Moreover, meme coins such as DOGE are heavily reliant on speculation due to their lack of genuine use cases, making them more susceptible to fluctuations in fiat currency liquidity levels and worldwide interest rate anticipations. During DOGE’s early 2021 surge, interest rates were close to or below zero globally, which encouraged unparalleled hazard-taking throughout the financial sector. However, this is no longer the case, as rates in the United States, the world’s most significant economic entity, currently stand at several-year peaks above 5%. This article has been corrected in the third paragraph to indicate that the 50-week SMA is anticipated to cross above the 200-week SMA, rather than the 200-day SMA. Edited by Sheldon Reback.