Dogecoin Crossover That Led To 90% & 180% Rallies Could Soon Form Again

2024-10-02 22:30:02

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An analyst has pointed out how a Dogecoin indicator could be about to show a crossover that proved bullish the last two times for the DOGE price.

Dogecoin May Be About To Show A Bullish MACD Crossover

As explained by analyst Ali Martinez in a new post on X, a MACD crossover could be about to happen for DOGE soon. The “Moving Average Convergence/Divergence” (MACD) is a technical analysis indicator momentum indicator tracking the difference between two Exponential Moving Averages (EMAs) of an asset. The EMAs that the metric typically uses are the 26-period and the 12-period ones. The latter is subtracted from the former to get the indicator’s value and the line on which these values are plotted is known as the MACD line.

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There is also another line relevant to the indicator called the signal line, which is just the nine-period EMA of the MACD line. The crossovers between these two lines can serve as buy or sell signals for the given asset.

Now, here is the chart shared by the analyst, which shows the trend in the MACD for the Dogecoin weekly price over the past year or so:

Looks like the two lines have been approaching each other in recent days | Source: @ali_charts on XAs displayed in the above graph, the Dogecoin MACD and its signal line have recently come close to touching each other. Currently, the signal line is above the MACD line, but if they continue in their recent trajectories, then their arrangement could be reversed.

A crossover of this type is generally considered a bullish sign. In the chart, Martinez has highlighted what happened the last two times that the DOGE weekly price witnessed this trend.

“The last two times Dogecoin $DOGE had a MACD bullish crossover on the weekly chart, it rallied 90% and 180%, respectively,” notes the analyst. Given this trend, it’s possible that the meme coin could benefit from a price boost this time as well, should the crossover take place.

In some other news, the DOGE Active Addresses have shot up to pretty high levels recently, as Martinez has pointed out in another X post.

Dogecoin Active Addresses The value of the metric appears to have registered a sharp surge recently | Source: @ali_charts on XThe “Active Addresses” indicator keeps track of the total amount of Dogecoin addresses that are taking part in some kind of transaction activity on the network every day. In the latest spike, the metric has reached a high of of 84,306, which is the highest that it has been in around six months. Thus, it would seem that users have been quite active with their trades recently.

DOGE Price

At the time of writing, Dogecoin is trading around $0.105, down almost 4% over the past week.

The price of the coin appears to have been following a bearish trajectory recently | Source: DOGEUSDT on TradingView

DOGE-1,33%

ALI0,89%

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