Dogecoin (DOGE/USD) is on the cusp of a rare technical event that could signal a bullish trend for the meme coin. Crypto trader Kevin predicts that the next major upward move for Dogecoin will coincide with a macro golden cross on the weekly chart. This occurs when the 50-day moving average (MA) crosses above the 200-day MA, an event that happens approximately every four years.
While Dogecoin has experienced a recent decline in both weekly (-7%) and monthly (-6%) performance, the potential golden cross could counteract this trend. Kevin believes that Dogecoin and the broader crypto market will start rallying within the next two weeks, coinciding with the liquidity cycles within the four-year crypto cycles.
Beyond the technical indicator, the charts are showing signs of an oversold market, hinting at a potential breakout. This bullish setup is further supported by Dogecoin’s current position on top of the macro golden pocket of support, a strong foundation for potential growth.
Despite the bullish sentiment, Dogecoin’s recent price drop has resulted in a decline in trader interest. Pepe (PEPE/USD), currently holding the third position on the meme coin board based on market capitalization, reported a 24-hour trading volume of $820.7 million, surpassing both Dogecoin and Shiba Inu (SHIB/USD). IntoTheBlock data reveals a 5% decrease in large transaction volume and a 6% decline in daily active addresses for Dogecoin, suggesting a drop in activity.
However, the Dogecoin Foundation remains optimistic about the coin’s future. In a recent post, they announced the completion of their development ecosystem, and they are 90% complete in lowering the barrier for Dogecoin business adoption. This suggests continued development and potential for future growth.
While the macro golden cross could be a catalyst for Dogecoin’s resurgence, it’s essential to note that the crypto market remains volatile and unpredictable. Investors and traders should conduct thorough research and consult with financial advisors before making any investment decisions.
