Dogecoin’s golden cross hints at a rally toward $1 – Is it possible?

• DOGE’s price was moving inside an up channel. 
• The Bollinger Bands suggested a price correction soon. 

The market condition turned heavily in investors’ favor, with most tokens registering massive growth, and Dogecoin [DOGE] wasn’t left out.

This latest pump has pushed the world’s largest memecoin’s price up in triple digits last week. Meanwhile, a major development happened, hinting at a continued price rise for DOGE. 

Dogecoin’s golden cross

Dogecoin bulls clearly dominated the market last week, as its price surged by more than 140% during that time. In fact, the bull rally continued in the last 24 hours.

As per CoinMarketCap, DOGE’s value surged by over 48%. At the time of writing, DOGE was trading at $0.4192.

This aligned with AMBCrypto’s analysis, where we reported that there were chances of DOGE surging by 50%.

The latest price increase pushed 61.6 million Dogecoin addresses in profit, which accounted for 96% of the total number of DOGE addresses.

While that happened, DOGE witnessed a golden cross on its weekly chart. To be precise, the memecoin’s 9-day MA flipped its 21-day MA, which hinted at a continued price rise.

Source: TradingView

Odds of DOGE’s bull run continuing 

In the meantime, Ali, a popular crypto analyst, also posted a tweet revealing a notable update.

As per the tweet, DOGE was moving inside an up channel, and at press time the coin was testing the middle resistance level of the pattern.

A successful test could fuel this ongoing rally, suggesting a potential rise towards $1. Therefore, we took a look at DOGE’s on-chain data.

The memecoin’s trading volume increased sharply along with its price, which generally acts as a foundation for a bull rally.

Its Open Interest also shot up, meaning that the chances of the ongoing bullish trend continuing were high

Apart from that, Dogecoin’s network activity also remained high. This was evident from the rise in its daily active addresses. 

Source: Santiment

Though these aforementioned metrics looked bullish, there might be trouble ahead for Dogecoin. The coin’s price touched the upper limit of the Bollinger Bands, which often results in price corrections.

On top of that, the memecoin’s Money Flow Index (MFI) entered the overbought zone. This suggested that selling pressure on the memecoin might rise, which could have a negative impact on its bullish momentum. 

Source: TradingView

Read Dogecoin’s [DOGE] Price Prediction 2024–2025 

However, Dogecoin was not subjected to major liquidations going forward in the short term. This was the case, as the liquidation heatmap didn’t show major liquidity taking place in the coming days.

However, as suggested by the Bollinger Bands, if DOGE faces a correction, then it might drop to its support near $0.32. 

Source: Coinglass