Dogecoin Shows Potential for a Price Surge with Upcoming Technical Indicator

Dogecoin Poised for Price Surge with Technical Indicator

Dogecoin (DOGE), the undisputed king of meme coins by market capitalization, may be signaling a potential uptrend with the formation of a "golden cross," according to technical indicators.

DOGE Price Outlook

This formation, which triggered a significant price rally in early 2021, is now on the horizon. Currently, DOGE is trading at $0.1444, having recently experienced a 4.70% drop. However, it has still enjoyed a remarkable 60.32% growth year-to-date (YTD), outpacing Bitcoin (BTC), which has gained 43.5% since the start of the year.

Dogecoin's spot price continues to trend upward, with its 50-week simple moving average (SMA) poised to surpass the 200-week SMA, potentially forming a "golden cross."

Historical Significance

In early 2021, this price formation preceded a historic price rally, where Dogecoin surged by approximately 8,000%, reaching an all-time high of $0.73.

The current golden cross formation gained attention in March when Dogecoin surpassed its 200-week SMA, leading to a 70% price increase within a week, potentially marking the first golden cross in three years.

Current State of DOGE

Despite the positive macroeconomic outlook in 2021, current conditions are less promising. Concerns about interest rates in the USA and geopolitical events continue to create uncertainty.

However, cryptocurrency analyst World Of Charts suggests that Dogecoin is approaching a critical descending trend line and could potentially break out, leading to a 100% price increase to a target of $0.29.

Market Sentiment

As Dogecoin's price fluctuates, investor sentiment is also being monitored. At the time of writing, DOGE was trading at $0.1445 after a 1% increase. Its market capitalization stood at $20 billion.

However, the 24-hour trading volume has dropped significantly by 37% to $674 million, indicating a decrease in interest.