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The Dogecoin price has started a fresh climb above $0.4 for the first time in over three years, putting it at levels not seen since the 2021 bull market. Particularly, the meme coin is up by about 55% in the past 24 hours, further relaying the bullish sentiment. Interestingly, this latest move on the technical charts has caught the attention of crypto enthusiasts, with some analysts forecasting that the popular meme coin might be ready to create a new all-time high.
According to a crypto analyst, a bullish indicator known as the “golden cross” recently appeared on Dogecoin’s weekly chart, which is setting the stage for a new all-time high very soon.
Analyst Highlights Golden Cross On Dogecoin Price Weekly Chart
A golden cross occurs when the 50-moving average (a short-term price average) crosses above the 200-moving average (a long-term price average) on a price chart. This technical indicator is often viewed as a bullish signal and is even very rare on longer timeframes like the weekly chart. When it does appear, it can mark the beginning of significant upward momentum.
Source: X
In the case of the Dogecoin price, this golden cross on the weekly timeframe was observed by a crypto analyst who goes by the name Mikybull Crypto on social media platform X. Interestingly, this has only happened for the Dogecoin price a few times in history. He pointed out that the last time this pattern emerged for Dogecoin was in the final quarter of 2020, which was just before the highest Dogecoin rally till date.
The last golden cross on its weekly chart signaled the start of its 2021 rally, during which the coin skyrocketed from fractions just under $0.004 to over $0.73 within a few months.
Why A $4 Target May Be Possible This Cycle
Milkybull Crypto highlighted possible price targets for the Dogecoin price after pointing out the golden cross. Interestingly, the price prediction is based off of the alignment of the Fibonacci levels with the Dogecoin performance after the last golden cross. Analysts often use these levels to identify possible future price points where assets might face resistance or find support during an uptrend or downtrend.
According to Mikybull Crypto, Fibonacci extension levels indicate that a rally toward $2 to $4 could be achievable for Dogecoin in this cycle. Notably, the most possible resistance could be encountered at the 1.618 Fib level when projected from the golden cross, which is around $2.4464.
At the time of writing, Dogecoin is trading at $0.4278 and is only about 70% away from creating an all-time high. A continued rally to the all-time high is very probable at this point, given that the meme coin is already up by 156% in the past seven days. If Dogecoin were to reach $2 and $2, this would represent a return of 370% and 835%, respectively, from the current price.
Featured image created with Dall.E, chart from Tradingview.com
