Meme coins may soon heat up as the leading coin, Dogecoin, has formed a golden cross, signaling a major bull run ahead. The golden cross occurs when the 50-day simple moving average (SMA) of an asset's price moves above the 200-day SMA. This crossover indicates that short-term momentum is currently outperforming the long-term trajectory, with the potential to develop into a strong bull run.
Dogecoin's moving average made a bullish crossover at the start of today's trading session. Although a golden cross is considered a positive indicator, it has an uneven track record of predicting trends across most markets, including stocks, Bitcoin, and DOGE. This makes it unreliable as an independent indicator.
However, most of DOGE's previous major movements occurred when a golden cross appeared. For example, the price increased by over 130% to 46 cents in the four weeks following the golden cross on November 6, 2024. The price increased by 25% in the four weeks after the bullish moving average crossover on November 22, 2023.
Similarly, a golden cross occurred in early November 2020, marking the start of a major bull run that lasted four months, witnessing a price increase of over 1,000% in four months. Let's see if history repeats itself.