The price of Dogecoin started a new erab above $0.4 for the first time in over three years, putting it at levels never seen since the bull market of 2021. Notably, the meme coin is up around 55% in the last 24 hours, further relaying the bullish sentiment. Interestingly, this latest technical development has caught the attention of crypto enthusiasts, with some analysts. predict that popular meme piece could be ready to create a new absolute record.
According to a cryptocurrency analyst, a bullish indicator known as the “golden cross” recently appeared on Dogecoin’s weekly chart, paving the way for a new all-time high very soon.
Analyst Highlights Golden Cross on Weekly Dogecoin Price Chart
A the golden cross occurs when the 50 moving average (a short-term price average) exceeds the 200 moving average (a long-term price average) on a price chart. This technical indicator is often considered a bullish signal and is even very rare on longer time frames like the weekly chart. When it appears, it can mark the start of significant upward momentum.
In the case of Dogecoin price, this golden cross on the weekly time frame was observed by a crypto analyst who goes by the name Mikybull Crypto on the social media platform X. Interestingly, this has only happened for the Dogecoin price a few times in history. He pointed out that the last time this trend appeared for Dogecoin was in the last quarter of 2020, just before the highest Dogecoin rally to date.
The final golden cross on its weekly chart marked the start of its 2021 rally, during which the coin rose from just under $0.004 to over $0.73 in a matter of months.
Why a $4 Target Could Be Possible This Cycle
Milkybull Crypto highlighted possible price targets for the Dogecoin price after highlighting the golden cross. It is interesting to note that the price prediction is based on the alignment of Fibonacci levels with Dogecoin performance after the last golden cross. Analysts often use these levels to identify possible future price levels where assets might encounter resistance or find support during an uptrend or downtrend.
According to Mikybull Crypto, Fibonacci extension levels indicate that a rally towards $2 to $4 could be feasible for Dogecoin during this cycle. Notably, the most possible resistance could be encountered at the 1.618 Fibonacci level when projected from the Golden Cross, which is located around $2.4464.
At the time of writing, Dogecoin is trading at $0.4278 and is only about 70% away from creating an all-time high. A continuation of the rally towards the all-time high is very likely at this point, given that the meme coin is already up 156% over the past seven days. If Dogecoin reached $2 and $2, that would represent a 370% and 835% return from the current price, respectively.
Featured image created with Dall.E, chart from Tradingview.com