According to Ali Charts, a prominent cryptocurrency analyst on X (formerly Twitter), Dogecoin (DOGE) is approaching a significant technical setup that may signal an impending price surge. Ali’s recent tweet highlights that the MACD (Moving Average Convergence Divergence) indicator on DOGE’s weekly chart is nearing a bullish crossover—historically a precursor to substantial price rallies of 90% and even 180%.
Historical Context: MACD Bullish Crossovers
Dogecoin has demonstrated a pattern of price increases following MACD bullish crossovers on its weekly chart. Ali’s analysis points to two notable instances where this technical signal correlated with significant price movements. During the last two bullish crossovers, DOGE experienced price surges of 90% and 178.62%, respectively.
First Rally: DOGE’s price increased by approximately 84.54%, rising from $0.04851 to around $0.081.
Second Rally: The cryptocurrency surged by 178.62%, climbing from $0.081 to approximately $0.14649.
While these rallies were followed by corrections, the MACD indicator has consistently acted as a reliable signal for future upward momentum.
Current MACD Setup: A Potential Signal for Uptrend
The MACD indicator is a widely used tool for tracking momentum and identifying potential trend reversals. Ali Charts notes that whenever the MACD line (blue) crosses above the signal line (orange) on DOGE’s weekly chart, it has historically coincided with notable price increases. Currently, the MACD lines are converging, and the MACD histogram indicates a decline in bearish momentum, as evidenced by decreasing red bars. A bullish crossover could signal a new upward trend for DOGE.
What to Expect: Future Price Movements
Should the anticipated MACD crossover occur, traders might brace for another price surge. However, the extent of this potential increase—whether it aligns with the historical movements of 90% or 180%—remains uncertain. Factors such as investor sentiment and the broader market environment will also play a crucial role in determining DOGE’s price trajectory.
Monitoring the MACD crossover is essential, as it serves as a critical indicator for the upcoming phase of DOGE’s price movement. Although historical performance suggests a significant comeback may be on the horizon, the ultimate outcome will depend on market reactions.
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Disclaimer: Cryptocurrency investments carry significant risk, and individuals should only invest what they can afford to lose. Always conduct thorough research and consider seeking professional advice before making investment decisions.