Dogecoin has been on a roll lately, climbing past several resistance levels and showing strong bullish signs. This has got investors excited about its potential for further growth.
A Textbook Golden Cross
One key indicator that’s got analysts buzzing is the completion of a “Textbook Golden Cross” on Dogecoin’s weekly chart. This is a bullish pattern that often signals sustained upward momentum.
The Golden Cross happens when the 50-day moving average crosses above the 200-day moving average. This indicates that buyers are in control and prices are likely to rise.
A Possible Correction?
While the Golden Cross is a positive sign, market expert Kevin cautions that Dogecoin might experience a short-term correction.
He points out that four years ago, after Dogecoin completed a similar Golden Cross, it dipped for a couple of weeks before reaching new all-time highs.
This suggests that Dogecoin could see a similar pullback before continuing its upward climb.
Dogecoin’s Price Outlook
Dogecoin has recently retested the $0.28 level, breaking through the $0.26 resistance. This shows its strength as the leading meme coin.
With bullish sentiment strong, Dogecoin could continue its growth in the coming weeks, potentially reaching $0.50 or even its all-time high of $0.73.
However, if the bulls lose control, there could be a retracement as predicted by Kevin.
Stay Cautious
Overall, while Dogecoin’s recent performance is promising, investors should be cautious in the short term. It’s possible that Dogecoin will follow a similar pattern to its previous Golden Cross, with a dip before a continued rally.
Dogecoin’s price action will likely be influenced by Bitcoin’s movements, as it often follows the flagship cryptocurrency.
