Dogecoin's Golden Cross Signals 100% Rally to $0.56

Dogecoin has shown a strong rebound after a brief pullback, driven by renewed bullish sentiment in the broader crypto market, which has been fueled by Bitcoin’s persistent rally. As the largest dog-themed meme coin approaches key resistance zones, technical indicators suggest that the current upward trend may continue, pushing prices to higher levels.

Trader Tardigrade, a seasoned crypto analyst and investor, has identified a promising trend on DOGE’s 1-day chart. The expert highlighted that DOGE is poised to continue its upward trajectory, supported by a newly formed bullish cross, specifically the Golden Cross. This technical signal occurs when a short-term moving average crosses above a long-term moving average, often indicating a shift from bearish to bullish price dynamics. This signal is particularly significant as it suggests a potential long-term rally for DOGE, which has shown resilience amidst broader market fluctuations.

The recent golden cross occurred as the 20-day Exponential Moving Average (EMA) crossed above the 50-day EMA. This development marked the end of a 4-month downward trend that was triggered by a death cross in late January. The death cross had hindered DOGE’s performance for the subsequent months, but the recent golden cross has put the meme coin back into positive territory. According to the analyst, this development hints at the continuation of the current uptrend, with a predicted rally to the $0.56 level in the upcoming weeks.

In a larger time frame, particularly the 1-month chart, Trader Tardigrade revealed that Dogecoin is finalizing cycle 3, preparing for a rally to this cycle’s peak. The expert’s analysis is based on past trends that led to DOGE’s most powerful moves, classified under the 3 cycles. Each cycle shows DOGE’s performance from a bear market phase to a bullish market phase. Currently, the meme coin is in the final part of cycle 3, signaling a substantial move to a cycle top, positioned at the $20 mark.

It is worth noting that Dogecoin’s Open Interest (OI) has significantly risen amid recent price spikes. With interest increasing, mood turning bullish, and buying pressure steadily increasing, the meme coin might be preparing for its next leap upward. This decoupling situation must be closely monitored as it points to ongoing speculative positioning even as price momentum fades.