What is a Golden Cross and Why Is It Important?
The formation known as a Golden Cross in cryptocurrencies is considered a strong bullish signal by technical analysis. This formation occurs when the 50-day simple moving average (SMA) crosses above the 200-day SMA. Essentially, it indicates that short-term price momentum has outpaced the long-term trend and the market is about to gain some freedom.
#Dogecoin ($DOGE ) has once again captured the spotlight by capturing this signal for the first time since November 2024.
Past Golden Crosses and Price Actions
The price movements following a Golden Cross in Dogecoin's history reveal the potential distribution of this signal:
November 2024: Within four weeks of the Golden Cross, DOGE surged by more than 130%, reaching $0.46.
November 2023: The price increased by 25% after the formation.
November 2020: A historical example… Following the golden cross, DOGE entered a legendary bull run, rising by more than 1,000% in four months.
This data suggests that the Golden Cross did not lead to major rallies, but could trigger strong price movements, particularly for Dogecoin.
What Are Technical Analysts Saying?
Analysts argue that this formation could herald a new bull run for Dogecoin. The increase in trading volume and market rally, in particular, are increasing the potential for this.
However, they urge investors to remain cautious, reminding them of the recurrence of some personal data.
Market Expectations
The short-term technical target for DOGE is seen as the $0.15-$0.18 range.
If the formation expands with strong volume, a rise to $0.25 is possible.
A more aggressive bearish scenario, similar to the long-awaited 2020 example, is possible.
Conclusion
Dogecoin's first golden cross in November 2024 excited both technical analysts and investors. History suggests that this signal can occasionally trigger major rallies for DOGE. However, the volatility of dynamic markets necessitates that advertising consider both opportunity and risk management simultaneously.
