Dogecoin Flashes Golden Cross Trend To Mimic 2021 Bull Cycle

Dogecoin (DOGE), a top performer in the meme coin ecosystem, is exhibiting signs of a bullish golden cross. The meme coin’s movement follows a similar pattern seen in early January 2021. 

Dogecoin’s Bullish Momentum

According to the latest CoinMarketCap data, DOGE is ranked the ninth largest cryptocurrency based on capitalization, which comes in at $21.8 billion. In the past day, DOGE has jumped by 4.39% to trade at $0.1514. The trading volume also increased by 2.2% to $1.1 billion, indicating a surge in investors’ interest.

After a period of sluggish trading, DOGE surpassed a key technical resistance in March, climbing above its 200-week Simple Moving Average (SMA). A major sign confirming a golden cross on DOGE is a northward movement of the spot price of the 50-week Simple SMA. In the next few weeks, it is expected that it will surpass the 200-week SMA. 

This means short-term price momentum may soon outpace long-term momentum, perhaps resulting in a sustained bullish trend. 

If this happens, the anticipated Golden Cross would be the first in more than three years. In early January 2021, the price of DOGE climbed over 8,000% to 76 cents on Binance following a four-month market rally.

Caution to Dogecoin’s Investors

Investors should, however, exercise caution when investing in DOGE. This is because past performance doesn’t guarantee future results. 

This is particularly correct in the case of moving average crossovers, which tend to lag price. In the past, traders have been caught off guard by similar signals in traditional markets.

Moreover, global interest rates were close to or below zero during the start of DOGE’s explosive rise in 2021, which encouraged aggressive risk-taking in the financial markets. Today, things are very different as interest rates in the US have risen above 5%. This change could reduce the interest of investors in DOGE.

Despite these concerns, DOGE has risen to become a major competitor in the crypto space. An earlier report from BGEcrypto shows DOGE eclipsing altcoins such as Ripple’s XRP and Cardano (ADA).