Dogecoin (DOGE), indisputably at the peak of meme coins by market value, might be hinting at a potential upward trend with the possibility of a “golden cross” formation according to technical indicators.
DOGE Price Outlook
This formation had triggered a significant price movement in the early months of 2021. As of today, DOGE is priced at $0.1444, having experienced a sharp 4.70% drop recently. However, since the beginning of the year (YTD), it has seen a noticeable growth of 60.32%. Bitcoin (BTC), which has increased by 43.5% since the start of the year, significantly trails behind it.
Dogecoin’s spot price continues to reflect a rise with its 50-week simple moving average (SMA) and may soon surpass the 200-week SMA, potentially forming a “golden cross”.
This price formation at the beginning of 2021 preceded a historic price rally where Dogecoin experienced an approximate 8,000% increase, reaching an all-time high of $0.73.
The process leading to this upcoming golden cross drew attention in March when Dogecoin surpassed its 200-week SMA, showcasing a dramatic 70% price increase within just a week, potentially marking the first golden cross in three years.
Current State of DOGE
Contrary to the positive macroeconomic outlook seen in 2021, current conditions do not appear very promising. Questions about interest rates in the USA and geopolitical events continue to create uncertainty.
Despite the market challenges, World Of Charts, a well-known cryptocurrency analyst, indicates that Dogecoin is gradually approaching a critical descending trend line and could potentially experience a breakout that might culminate in a 100% increase in price, reaching a target of $0.29.
While all this is happening, eyes are also turned to DOGE’s price. At the time of writing, DOGE’s price was trading at $0.1445 after a 1% increase. During this period, DOGE’s market cap was at the $20 billion level.
On the other hand, looking at what happened in the 24-hour trading volume was also important to understand investor behavior. After a 37% decrease, the 24-hour trading volume fell to $674 million, reflecting a significant drop in interest.
