Dog-themed cryptocurrency Dogecoin (DOGE) is on the verge of achieving a potential "golden cross," a chart pattern that occurs when a short-term moving average, usually the daily SMA 50, crosses above a long-term moving average such as the daily SMA 200, often seen as a bullish signal.
As noted on its daily chart, Dogecoin's 50-day SMA has turned up and appears to be moving above the 200-day SMA in the next few days, indicating a potential "golden cross." The pattern implies that short-term price momentum is outpacing long-term momentum, which may lead to a bull run.
Dogecoin's last golden cross was recorded in November 2023. Interestingly, this was not the first time Dogecoin experienced this phenomenon in November. The cryptocurrency also achieved a golden cross in November 2022, marking two consecutive years when this bullish signal appeared in the same month.
From current market indications, it seems likely that Dogecoin's next golden cross might occur in November once again. If this happens, it would be the third consecutive November in which Dogecoin has seen a golden cross, a rare and noteworthy pattern in the cryptocurrency's trading history.
Bullish November?
With previous golden crosses occurring in November 2022 and November 2023, the possibility of a third consecutive golden cross in November 2024 is generating considerable interest.
Crypto analyst Ali predicts a parabolic bull run for Dogecoin in November upon a sustained close above $0.20.
However, the moving average-based crossover is often criticized for being a lagging indicator that might trap traders on the wrong side of the market.
This was the case in the event of Dogecoin's golden cross in November 2022, as DOGE reported losses of 16%. In November 2023, Dogecoin surged 22% over the course of the month, posting positive performance.
The market will watch closely in the coming days as the potential for another golden cross adds to the intrigue and speculation surrounding Dogecoin's price performance.