The biggest meme coin on the market has been showing a solid price performance in the past 40 days and forming important technical signals that hint at a full-blown trend reversal in the foreseeable future, which could explain the high profitability of the asset.
How does golden cross fuel buying?
The technical signal we have described in our previous articles is considered one of the strongest indicators of an upcoming trend reversal. Even though Dogecoin is not the most stable asset on the market, the cross between the 200- and the 50-day moving averages might become fuel for the market independently.
As the long-term reversal sign occurs, more investors and whales might want to get more exposure to the meme coin and fuel further growth of the asset. Unfortunately, the trading volume does not suggest a spike in buying activities, but it might be a matter of time.
The recovery of the market based on the Fed's dovish talk could become another reason behind DOGE's growth, but, at the same time, the unpredictable nature of the crypto market at this point should be considered a major risk factor that may cause Dogecoin's place to change in a matter of days or even hours.
Profitability around 60% is also a healthy factor for Dogecoin's price, as it is the middle ground between the oversold and overbought states of the meme coin. Up until 80% profitability, DOGE will have enough room for growth and will not face any issues from a holder composition perspective.
At press time, Dogecoin is trading at the $0.1 price threshold and has gained 4.6% to its value in the last 24 hours.