Why Dogecoin’s Recent Golden Cross Could Spark the Next Price Rally
Meme cryptocurrencies could be gaining momentum soon, as Dogecoin (DOGE) has just formed a golden cross—a key technical indicator that often signals a bullish trend ahead.
A golden cross happens when the 50-day simple moving average (SMA) crosses above the 200-day SMA. This suggests that short-term price momentum is stronger than the long-term trend, which can lead to a significant upward move. Dogecoin’s moving averages crossed earlier today, catching the attention of traders and investors alike.
While the golden cross is generally viewed as a positive sign, it’s important to remember that its accuracy varies across markets, including stocks, Bitcoin, and Dogecoin itself. On its own, it’s not a guaranteed predictor of price movements but rather one of several signals traders watch.
Historically, Dogecoin’s biggest rallies have coincided with the formation of a golden cross. For example, after the golden cross appeared on November 6, 2024, DOGE surged more than 130% within four weeks, reaching 46 cents. Similarly, the golden cross on November 22, 2023, was followed by a 25% price increase over the next month.
Going further back, the golden cross in early November 2020 marked the start of a major bull run that saw Dogecoin’s price climb over 1,000% in four months.
What This Means for Investors
The recent golden cross may indicate that Dogecoin is gearing up for another rally, but caution is advised. Technical indicators work best when combined with broader market analysis and fundamentals.
Investors should watch for confirmation through volume and other signals before making major decisions. Still, the pattern suggests renewed interest in meme coins, which could impact the broader crypto market.
Dogecoin’s price action in the coming weeks will be key to understanding whether this golden cross will lead to sustained gains or remain a short-lived signal.
