%Dogecoin (CRYPTO: $DOGE), the world’s biggest meme cryptocurrency, is on the cusp of forming a “golden cross,” a bullish technical pattern that could indicate a coming price surge.
The golden cross comes after the price of Dogecoin has already risen 63% in 2024 to trade at $0.15 U.S. per token.
The year-to-date gains in Dogecoin have given the meme coin a $22 billion U.S. market capitalization and outpaced increases seen in leading cryptos %Bitcoin (CRYPTO: $BTC) and %Ethereum (CRYPTO: $ETH).
Now, the 50-week moving average of Dogecoin looks like it will cross the 200-week moving average, forming a bullish golden cross.
A golden cross essentially occurs when an asset’s near-term price momentum surpasses the long-term momentum. This typically leads to a price surge and a prolonged bull run.
Professional traders watch charts and use moving average crossovers to identify when to buy and sell stocks and cryptocurrencies.
The impending golden cross would be the first one for Dogecoin in more than three years.
The last time Dogecoin formed a golden cross was in January 2021, leading to a four-month rally that saw the meme token’s price rise more than 8,000% to a record $0.76 U.S.
Analysts are urging caution with Dogecoin despite the coming golden cross, noting that price movements in the crypto are mainly driven by investor speculation rather than fundamentals.
Also, during Dogecoin’s 2021 rally, interest rates were near zero worldwide and %Tesla (NASDAQ: $TSLA) chief executive officer (CEO) Elon Musk was cheering on the meme coin on social media.
Still, many analysts see Dogecoin’s price rising further in coming weeks should a golden cross be reached.