The Dogecoin price is once again showing signs of a strong bullish run. Particularly, a golden cross has emerged on the Dogecoin 4-hour price chart, giving rise to what could be the continuation of bullish momentum in the coming weeks. The emergence of this golden cross suggests that buyers are now in control, and the meme coin could well be on its way to repeating its early November rally.
In technical analysis, a golden cross is a pattern where a short-term moving average crosses above a long-term moving average. This golden cross was highlighted for the Dogecoin price by crypto analyst Trader Tardigrade, known for his technical insights on the social platform X. According to the analyst, this golden cross was observed in the Moving Average Convergence Divergence (MACD) indicator below the zero line.
When this occurs in the MACD under the zero line, it indicates a reversal from bearish to bullish sentiment, setting the stage for upward price action. According to the 4-hour Dogecoin price chart Trader Tardigrade shared on the social media platform X, this isn’t the first occurrence of such a golden cross in recent weeks. Particularly, Dogecoin had a similar MACD golden cross in the first week of November. At this time, the Dogecoin price was trading around the $0.15 mark on November 4. Following this golden cross, a bull run was ushered in, leading to a strong rally that first peaked at $0.426 on November 12. This comes out to a price increase of about 184% in eight days.
The historical performance following the November golden cross has led to heightened anticipation for what might unfold this time. If Dogecoin’s price were to follow a similar trajectory, it could potentially achieve a dramatic rally in the coming days. Based on projections shared by Trader Tardigrade and the price patterns seen in November, this rally could push Dogecoin toward a target price of $1 by December 7.
As Dogecoin gears up for this anticipated rally, certain resistance levels must be cleared to achieve the ambitious $1 target. The immediate resistance sits at $0.43, and then the current 2024 high of $0.4759. Breaking above this level would see the Dogecoin price trading at its new highest levels in three years.
From there, sustained momentum and buying pressure could drive Dogecoin toward $0.50 and the current all-time high of $0.7316 before eyeing the $1 mark. On the downside, support levels at $0.37 and $0.35 will be critical to maintaining bullish sentiment, especially if the golden cross fails to materialize into the projected rally.
At the time of writing, the Dogecoin price is trading at $0.404, up 9.8% from a November 26 low of $0.3679.
In conclusion, the Dogecoin price is showing signs of a strong bullish run with the emergence of a golden cross on the 4-hour price chart. Traders and investors are closely watching key resistance and support levels as Dogecoin aims for the $1 target. With historical precedents and technical indicators pointing towards a potential rally, the coming weeks could be crucial for Dogecoin’s price action.
