Dogecoin (DOGE), the meme-inspired cryptocurrency, is on a tear this week, gaining over 10% in the past 24 hours and reaching a price of $0.1348. This surge in price comes after a series of bullish signals from both technical analysis and influential figures like Elon Musk.
The ‘King of Meme Coins,’ as Dogecoin is often called, received a boost from Elon Musk’s recent support. Musk’s involvement in the cryptocurrency space is well-known, and his latest comments regarding a potential ‘DOGE’ department within the government have reignited enthusiasm for the coin. This sentiment is reflected in Dogecoin’s impressive weekly gains of over 24% and monthly gains of 32%.
Adding to the bullish sentiment, several technical indicators are flashing green for Dogecoin. The widely-followed cryptocurrency trader Bluntz has noted that Dogecoin often experiences its strongest rallies towards the end of a cycle, after Bitcoin (BTC) has reached all-time highs. He believes that writing off Dogecoin is a mistake, pointing to its historical performance during market cycles.
Adding to the bullish outlook, renowned analyst Kevin has highlighted the potential for a ‘Golden Cross’ on Dogecoin’s weekly chart. A Golden Cross occurs when a short-term moving average crosses above a long-term moving average, often indicating a strong upward trend. This would be the first time in four years that Dogecoin has shown this pattern, potentially signaling a significant rally.
Technical analysis platform TradingView also reveals positive signals for Dogecoin. The MACD indicator, a popular tool for gauging an asset’s overall trend, has flashed a buy signal. The crossover of the signal line and the MACD line suggests a potential shift towards bullish momentum.
The Momentum Indicator also points towards a positive sentiment, comparing the current price with previous prices. However, the Relative Strength Index (RSI) remains neutral, indicating that the current price action might not be entirely sustainable. Despite this, the recent surge in price has attracted attention, and the net exchange inflows for Dogecoin have decreased by 63% in the last 24 hours, potentially suggesting a slowdown in sell pressure.
While Dogecoin’s recent price action is certainly bullish, it’s important to remember that the cryptocurrency market is highly volatile. While technical indicators and analyst sentiment are promising, investors should always conduct thorough research and manage risk accordingly. The next few weeks will be crucial for determining whether this rally is sustainable and whether Dogecoin can maintain its upward momentum.