Dogecoin’s Price Dips Despite Bullish Golden Cross

• The price of Dogecoin dropped by over 2% on Wednesday, despite positive network activity and bullish technical signals.
• A “golden cross” chart pattern, not seen in a year, was identified, signaling a potential reversal of the multi-month downtrend.
• Whale Alert recorded over $47 million worth of Dogecoin changing hands in three large transactions

The price of meme-favorite crypto Dogecoin fell over 2% on Wednesday, even as network activity reignited and technical signals flashed bullish. Blockchain trackers spotted a landmark “golden cross” chart pattern for the first time in a year, along with growing wallet use. However, DOGE has yet to respond positively as traders weigh mixed outlooks.

Whale Alert recorded over $47 million worth of Dogecoin changing hands across three large transactions early Thursday. Outflows from centralized exchange Robinhood to external wallets made up the bulk, possibly indicating investors withdrawing to hold independently or conduct business on-chain.

Dogecoin transfers align with an uptick in active addresses

The transfers align with a noteworthy uptick in so-called active addresses observed on the Dogechain. According to blockchain analytics firm IntoTheBlock, the count of active addresses transacting DOGE has surged by 87% since November 1st.

The jump may reflect resurgent interest not yet reflected in the token price hovering near 2-month lows. As network utilization rebounds off year-to-date lows, a breakout for the meme coin may materialize with a typical lag.

Adding to DOGE’s intriguing position is a bullish technical indicator not seen over the past 12 months. This week marked the first “golden cross” on the daily Dogecoin chart since November 2021, when faster-moving averages crossed above slower ones.

Last March, the opposite death cross pattern formed, presaging further weakness. Now the golden cross re-emergence hints the multi-month downtrend may have bottomed out or be on the verge of reversing higher again.