Dogecoin Forms Golden Cross, Fueling Hopes of a New Meme Coin Rally
Dogecoin (DOGE) has just flashed a golden cross, a technical pattern often associated with bullish momentum, renewing speculation about a potential price breakout in meme cryptocurrencies.
The golden cross occurs when the 50-day simple moving average (SMA) moves above the 200-day SMA, indicating that shorter-term price momentum is gaining strength over the longer-term trend. This crossover, which appeared early Monday, is being closely watched by traders as DOGE trades near $0.2416.
While historically linked to strong rallies, the golden cross isn’t a guaranteed signal. Analysts note that although the formation can precede significant price moves, it has a mixed track record across both traditional assets and crypto markets. Relying on it in isolation often leads to unreliable results.
Still, Dogecoin’s price history suggests the pattern could carry weight:
- In November 2024, DOGE surged 130%, reaching $0.46 within four weeks of a golden cross.
- A similar pattern in November 2023 led to a 25% rally over the following month.
- In late 2020, the signal preceded an explosive 1,000% rally over four months.
Whether this time will follow suit remains to be seen. While the golden cross may not offer certainty, it does suggest improving market sentiment — particularly at a time when meme coins are regaining momentum across the board.
As ever, traders should watch for confirmation from broader price action and volume before making directional bets.
