Dogecoin Price Flashes Weekly Golden Cross That Led To 2021 Rally, Why A $4 Target Is Possible This Time

Dogecoin price He started a new climateb is above $0.4 for the first time in more than three years, reaching $0.4 Levels not seen since Bull market 2021. In particular, the meme coin is up about 55% in the past 24 hours, adding to the bullish sentiment. Interestingly, this latest move on the technical charts has caught the attention of cryptocurrency enthusiasts, along with some analysts Predict that It may be the currency of the famous meme Ready to create New all-time high.

According to a cryptocurrency analyst, a bullish indicator known as a “golden cross” has recently appeared on Dogecoin’s weekly chart, which paves the way for a new all-time high to be reached very soon.

The analyst highlights the Golden Cross on the weekly Dogecoin price chart

A The golden cross occurs When the 50 moving average (short-term average price) crosses above the 200 moving average (long-term average price) on the price chart. This technical indicator is often seen as a bullish signal and is even very rare on longer time frames such as the weekly chart. When it appears, it can be flagged The beginning of significant upward momentum.

In the case of Dogecoin price, this is a golden cross on the weekly time frame It has been observed before A cryptocurrency analyst who goes by the name Mikybull Crypto on the social media platform X. Interestingly, this has only happened to the price of Dogecoin a few times in history. He noted that the last time this pattern appeared for Dogecoin was in the last quarter of 2020, which was before Dogecoin’s highest spike to date.

The recent golden cross on the weekly chart signals the start of a 2021 rally, with the coin rising from fractions of just under $0.004 to over $0.73 in the space of a few months.

Why a $4 target might be possible this cycle

Milkybull Crypto highlighted potential price targets for Dogecoin price after noting a golden cross. Interestingly, the price prediction depends on… Fibonacci levels alignment With the performance of Dogecoin after the recent golden cross. Analysts often use these levels to identify potential future price points where assets may encounter resistance or find support during an uptrend or downtrend.

According to Mikybull Crypto, Fibonacci extension levels indicate that a rally towards $2 to $4 is possible for Dogecoin in this cycle. It is worth noting that the largest possible resistance can be encountered at the 1.618 Fibonacci level when viewed 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 achieving its all-time high. It is very likely that the rally to an all-time high will continue at this point, given that the meme coin is already up 156% in the past seven days. If Dogecoin reaches $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