Dogecoin slipped 3.59% to $0.237 as broader markets retraced, but a technical golden cross reignited expectations of a strong bullish rally.
Whale accumulation and $10 billion in derivatives trading volumes suggest sustained confidence, with longs paying premiums to hold positions.
A repeat of November 2024 conditions could drive Dogecoin up by 275% to $0.769, setting a potential new record high.
Dogecoin fell by 3.59% on August 14, dropping to trade at $0.237. The pullback aligned with a wider market retracement. Despite the short-term weakness, technical indicators continue to point to the possibility of a larger move.
A golden cross appeared earlier this week on Dogecoin’s daily chart. This indicator occurs when the 50-day moving average crosses above the 200-day moving average. Historically, such crossovers often signal sustained bullish momentum. The same pattern was last seen in November 2024 when Dogecoin recorded a 276% rally. Current market conditions resemble that earlier setup, fueling optimism among bullish traders.
Whales and Traders Show Renewed Activity
Large holders of Dogecoin have started increasing their positions following the latest crossover. This response highlights confidence that the trend could follow a similar trajectory to last year. However, momentum indicators such as the relative strength index remain indecisive, reflecting hesitation between buyers and sellers.
If history repeats, Dogecoin could record a rally of nearly 275%, which would take its value to about 0.769 dollars. Achieving this level would place Dogecoin at a new record high. The scenario depends on whether buyers continue to accumulate and sustain the momentum.
Derivative Volumes Reflect Bullish Commitment
Interest has also surged in the derivatives market, where trading volumes exceeded 10 billion dollars in the past 24 hours. This represented a 31% increase from earlier sessions. Additionally, funding rates turned strongly positive, indicating that traders holding long positions are willing to pay premiums to maintain exposure. The combination of higher volumes and dominant longs reflects increasing confidence among futures traders.
Dogecoin’s price action remains unstable as market participants weigh both bullish and bearish signals. Nonetheless, the presence of a golden cross, coupled with rising derivatives activity, suggests that market optimism has not faded. The path forward may bring more volatility, but bullish traders appear prepared for the possibility of a substantial rally.
