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Dogecoin (DOGE), the king of meme coins, is on the verge of forming a golden cross on its hourly chart. This development has sparked interest among some investors, as it could signal a potential bullish price reversal for Dogecoin soon.
Golden cross signals potential momentum shift for DOGE
As seen on the Dogecoin hourly chart, with the 9-day and 26-day moving averages, the golden cross is set to form at $0.2331. Notably, a golden cross forms when a short-term moving average crosses over a longer-term one.
This typically signals an upward momentum for an asset, and in the case of Dogecoin, it is evident on its hourly chart.
As of press time, the Dogecoin price was trading at $0.2308, representing a 2.37% decline over the last 24 hours. DOGE had climbed to an intraday high of $0.2446 in earlier trading sessions before market volatility caused its dip.
Dogecoin’s decline is not unique to the meme coin, as a marketwide correction has impacted altcoins in general. Additionally, the Dogecoin ecosystem also saw profit-taking by some investors, triggering a sell-off.
Despite the volatility, the hourly golden cross and RSI positioning might catalyze a reversal of the downward price movement. Interestingly, Ali Martinez, a renowned on-chain analyst, says Dogecoin has the potential for a rebound to $0.46 if it finds support at $0.26.
DOGE’s Q3 performance fuels hope
The Dogecoin ecosystem at the start of the trading week experienced a surge in whale activity, involving 180 million DOGE. If the ecosystem whales decide to go on an accumulation spree, this might positively impact the meme coin’s price outlook.
Large holders have a significant influence on market movements and retail traders. The next couple of days would determine if the price can rebound, as predicted by Ali Martinez.
Meanwhile, as U.Today reported, Dogecoin is already crushing a six-year ultra-bearish trend in this third quarter. The meme coin has registered a 53% growth in its quarterly performance.
Vladislav Sopov
U.Today Editorial Team