- Golden cross pattern highlighted potential bullish momentum as DOGE prepared for a possible breakout
- Positive on-chain metrics and liquidation data supported a favorable outlook
Dogecoin [DOGE], at the time of writing, seemed to be on the brink of a significant “Golden cross.” This a bullish technical pattern known for signaling positive momentum on the price charts.
This crossover, where the 50-day moving average rises above the 200-day moving average, often ignites excitement among traders. Trading at $0.1601, many in the memecoin’s community are now expecting significant gains to arise out of this potential breakout.
Can the Golden Cross trigger a new bull run?
The Golden Cross is a widely recognized bullish indicator. In 2021, this pattern sparked a massive 21,000% rally, propelling DOGE to unprecedented heights and drawing global attention to the memecoin. As expected, the possibility of another Golden Cross has fueled speculation that DOGE could be on the brink of another explosive run.
However, market conditions are different now, and cautious optimism is advised. Although this setup creates an ideal atmosphere for speculation, investors should wait for confirmation of a breakout before making any significant moves.
Source: X/Eljaboom
Technical indicators – MACD and Stochastic RSI suggest consolidation
Examining Dogecoin’s technical indicators revealed a mix of signals. The MACD, while positive, seemed to lack strong divergence and urged caution. Additionally, the Stochastic RSI seemed to be nearing the neutral 50-level, reflecting neither overbought nor oversold conditions.
Consequently, these indicators hinted at a consolidation phase, with DOGE potentially building pressure for a decisive move.
However, this consolidation could also lead to heightened volatility as DOGE tests key levels. Therefore, while a breakout is possible, traders should remain vigilant.
