The market conditions have significantly favored investors recently, with many tokens experiencing substantial growth, including Dogecoin [DOGE].
Last week witnessed a remarkable surge in the price of the world’s largest memecoin, exceeding triple digits. Moreover, a significant development occurred, indicating a possible continuation of DOGE’s price climb.
The Significance of Dogecoin’s Golden Cross
During the past week, Dogecoin’s market was clearly dominated by bullish sentiment, leading to a price spike of over 140%. This bullish momentum has sustained over the last 24 hours.
According to data from CoinMarketCap, DOGE’s value surged by more than 48%, reaching a trading price of $0.4192 at the time of this report.
This aligns with the analysis by CryptoCrypto, suggesting a potential 50% surge for DOGE.
The recent price surge has put 61.6 million Dogecoin addresses in a profitable position, representing 96% of all DOGE addresses.
Additionally, a golden cross pattern appeared on DOGE’s weekly chart, with the memecoin’s 9-day moving average crossing above the 21-day moving average, indicating a potential continuation of the price uptrend.
Possibility of DOGE’s Bullish Trend Continuing
Meanwhile, a renowned crypto analyst, Ali, shared an update on Twitter that caught attention.
According to the tweet, DOGE was moving within an upward channel and was currently testing the mid-level resistance of this pattern.
A successful breakthrough at this resistance level could further fuel the ongoing rally, potentially propelling DOGE towards the $1 mark. Subsequently, an analysis of DOGE’s on-chain data was conducted.
The trading volume of the memecoin surged alongside its price, acting as a strong foundation for a bull run.
The Open Interest of DOGE also experienced a notable increase, indicating high chances of the current bullish trend persisting.
Furthermore, Dogecoin’s network activity remained robust, evident from the uptick in its daily active addresses.
While the aforementioned indicators leaned towards a bullish outlook, potential challenges loomed for Dogecoin. The coin’s price reached the upper Bollinger Bands limit, often a precursor to price corrections.
Moreover, the Money Flow Index (MFI) for DOGE entered the overbought territory, hinting at a possible increase in selling pressure that could hamper the bullish momentum.
Nevertheless, in the short term, Dogecoin seemed resistant to significant liquidations. The liquidation heatmap did not show any significant activity expected in the days ahead.
However, in line with the Bollinger Bands analysis, if DOGE encounters a correction, it could potentially find support near the $0.32 level.