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Dogecoin could be gearing up for another major surge in price as the meme coin’s chart shows the formation of a significant pattern. The Golden Cross pattern is a critical bullish formation on a chart that usually precedes a notable rally for digital assets such as DOGE. Currently, the Dogecoin price is forming its first Golden Cross in four years, making this an important development for the meme coin’s price.
Dogecoin Analyst Points out Golden Cross
Dogecoin analyst Kevin Capital on X (formerly Twitter) has highlighted an important formation on the Dogecoin chart. According to the crypto analyst, the movement of the DOGE price over the last few months has been pushing it toward the formation of a Golden Cross.
Understanding the Golden Cross Pattern
A Golden Cross pattern is typically formed when a short-term moving average, such as the 50-day moving average, crosses a long-term moving average like the 200-day moving average. This usually happens when the short-term moving average crosses the long-term moving average from below.
Presently, the short-term MA and the long-term MA are yet to cross, but the Golden Cross formation looks to be in the works. In the post, Kevin explains that the Golden Cross formation may happen in the next few weeks. Once this happens, it could signal the start of a bullish recovery, and according to Kevin, it would be the first Golden Cross in four years.
DOGE Price Could Touch $3.8
The completion of the Golden Cross pattern could be the catalyst that sets the Dogecoin price on a path to a new all-time high. The first target for the Dogecoin price with this formation is $0.93. This would be an almost 1,000% increase from the current level, just around $0.1.
Potential for Higher Gains
It doesn’t end there, however, as the crypto analyst believes that there is a possibility that the Dogecoin price will go higher than this. In what he calls a “Huge outperformance,” he says that the DOGE price could cross $2.2 if this happens. This would be an over 2,000% increase.
The third and final target for the Dogecoin price with the Golden Cross formation is $3.8. The analyst explains, though, that it would take an “astronomical performance” for this to happen. Nevertheless, this would mean an over 3,700% increase from here.
Economic Conditions and DOGE Price
However, the crypto analyst explains that the Dogecoin price reaching these levels depends on “how this economic liquidity cycle pans out.” The current Dogecoin all-time high is $0.73, which means an 800% increase from here will solidify a new high.
Technical Analysis and Market Sentiments
Market sentiments play a crucial role in the price movements of cryptocurrencies. With the formation of the Golden Cross pattern, technical analysts and traders will be closely monitoring the Dogecoin charts. This formation can often attract more investors and traders, creating a snowball effect that drives the price higher.
Moreover, the broader economic factors, including market liquidity, interest rates, and overall investor sentiment towards the crypto market, will also influence the potential price surge. Analysts will keep a close watch on these factors to better understand the trajectory of DOGE in the coming weeks and months.
To conclude, the potential Golden Cross formation on Dogecoin’s chart is an exciting development for investors and enthusiasts alike. If this pattern completes, it could set the stage for significant price movements, possibly taking DOGE to new heights. However, as always, it is essential to consider the broader economic conditions and market sentiments before making any investment decisions.
