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Dogecoin, the iconic meme coin, is once again captivating crypto traders as it forms a promising technical pattern known as the “Golden Cross”. The development sparked speculation about the possibility of another explosive rally, with previous Golden Crosses returning as much as 3,000% and 12,000%.
Dogecoin price jumped 24% today alone, 84% last weekAnd 162% in the last 30 days, with 94% of its holders now beneficiaries. Analysts are now closely monitoring the situation to see if history could repeat itself.
Golden Cross sparks bullish sentiment
The Golden Cross, an uptrend where the 50-day moving average (SMA) rises above the 200-day SMA, has always been a harbinger of rallies for Dogecoin. Crypto analyst Kevin highlighted on X that Dogecoin recently completed this formation on its weekly chart, a trend often followed by substantial gains.
However, traders are cautious, warning that an initial pullback can sometimes follow the Golden Cross before any substantial recovery.
& nbspCrypto Daily Trading Signals Also sharp revealed an “inverted head and shoulders” pattern in Dogecoin’s chart, another bullish indicator that could lead to further price movements.
Historically, this trend has been associated with significant rallies, one of which saw the price of Dogecoin rise by 3,364% and another by over 12,000%. However, traders are quick to note that Bitcoin market performance could heavily influence Dogecoin’s next moves, emphasizing that while indicators are favorable, patience and caution are required in the short term.
The increase in market activity also supports the potential for another rally: IntoTheBlock data reveals a 128.2% increase in large transaction volumes, a 67.9% increase in daily active addresses and a 137.6% increase in net flows to stock exchanges. Transactions above $100,000 increased from 1,150 to 2,234 in one day, signaling increased interest and liquidity in Dogecoin.
Raoul Pal’s “Last chance to add” zone
Global macro investor Raoul Pal weighed in on the bullish sentiment, calling it a “last chance to add” to Dogecoin and other meme coins before a possible breakout. He predicts that Dogecoin’s rally could generate broader gains across meme coins, adding to the optimism that has been building around Dogecoin’s recent achievements.
As Dogecoin approaches a critical weekly close, all eyes are on whether the latest Golden Cross could lead to another historic rally.
Why Dogecoin Could Be Set Up for Major Gains
Dogecoin’s recent surge may have more fuel than typical market trends. Elon Musk’s appearance at a Trump rally in Pennsylvania hints at a potential political alliance, raising the possibility that Musk could secure a role in the next administration. For Dogecoin, this connection is essential.
Musk has long been a major supporter of DOGE, having previously changed his platform’s logo to Shiba Inu. Speculation is also growing that he could lead a new Ministry of Government Effectivenesscalled DOGE, which could keep Dogecoin in the spotlight and potentially generate more interest.