Dogecoin (DOGE) is on the verge of a potentially significant bullish breakout as the highly anticipated “golden cross” technical pattern takes shape. This development has caught attention, as the previous occurrence of this pattern in early 2021 preceded a massive surge in DOGE’s price.
With a current market cap of approximately $21.7 billion, Dogecoin has showcased impressive performance this year, boasting a price increase of over 70%. This growth has significantly outpaced the nearly 50% increase in Bitcoin (BTC), the largest cryptocurrency by market capitalization.
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The Golden Cross: A Bullish Signal for Dogecoin
The golden cross is a technical pattern that occurs when a shorter-term moving average, in this case, the 50-week simple moving average (SMA), crosses above a longer-term moving average, typically the 200-week SMA. This crossover indicates that near-term price momentum is outpacing long-term momentum, potentially signaling the beginning of a prolonged bullish trend.
Momentum traders often rely on moving-average crossovers as part of a structured approach to identifying entry and exit points in the market. The impending golden cross on Dogecoin’s chart would be the first in over three years, and if history is any indication, it could herald a significant price rally.
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In March 2023, Dogecoin’s price surpassed its 200-week SMA, breaking out of a prolonged sideways consolidation pattern. Since then, the cryptocurrency has managed to establish a foothold above this critical average, further reinforcing the bullish sentiment surrounding DOGE.
Can DOGE Reach $0.2 in May?
With the golden cross on the horizon and the overall bullish sentiment in the cryptocurrency market, many investors are wondering if Dogecoin can reach the $0.2 mark in May 2024. According to Changelly experts, who have analyzed DOGE’s price fluctuations at the beginning of 2023, the average expected price for Dogecoin in May 2024 is $0.139.
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These experts also provide a range for Dogecoin’s potential price movement, with a minimum expected price of $0.128 and a maximum of $0.149. While these projections suggest that reaching $0.2 in May might be a stretch, the confirmation of the golden cross and the overall market sentiment could lead to a significant price appreciation for DOGE.