After a sudden, brief pullback on Tuesday, Dogecoin has rebounded strongly as bullish sentiment returned to the broader crypto market, fueled by Bitcoin’s persistent rally. As the largest dog-themed meme coin moves close to key resistance zones, technical developments are pointing to an extension of the current upward trend toward higher price levels.
Technical Cross Signal More Upside Action For Dogecoin
Seasoned crypto analyst and investor, Trader Tardigrade, has outlined a promising trend that signals increasing momentum in DOGE’s 1-day chart. In the analysis shared on the X (formerly Twitter) platform, the expert highlighted that DOGE looks poised to continue its upward trajectory, with the help of a newly formed bullish cross, particularly the Golden Cross.
A Golden cross is a technical signal that emerges when a short-term moving average crosses above a long-term moving average. The indicator often suggests a potential shift in price dynamics from bearish to bullish. This crucial signal, which is sometimes seen as a predictor of long-term rallies, comes at a time when DOGE is showing robust resilience in the face of wider market swings.
According to the analyst, the recent golden cross occurred as the 20-day Exponential Moving Average (EMA) crossed the 50-day EMA. Looking at the chart, the golden cross appeared after several months of bearish downtrend, triggered by a death cross. The death cross happened late January this year, hindering the meme coin for the next 4 months.
Trader Tardigrade stated that the golden cross marked the end of the 4 month downward trend as it put the meme coin back into positive territory once again. Since the development hints at the continuation of the current uptrend, the expert has predicted a rally to the $0.56 level in the upcoming weeks.
In a larger time frame, particularly the 1-month chart, Trader Tardigrade revealed that Dogecoin is finalizing cycle 3 as it gears up for a rally to this cycle peak. The expert’s analysis is based on past trends that led to DOGE’s most powerful move, classified under the 3 cycles.
Each cycle shows DOGE’s performance from a bear market phase to a bullish market phase. As seen in the chart, the meme coin is currently in the final part of cycle 3, which signals a substantial move to a cycle top, positioned at the $20 mark.
Open Interest Surges Amid Price Increase
It is worth noting that Dogecoin’s Open Interest (OI) has significantly risen amid recent price spikes. With interest increasing, mood turning bullish, and buying pressure steadily increasing, the meme coin might be preparing for its next leap upward.
Glassnode reported that the Futures Open Interest has increased by +63.9% in the last week, while DOGE’s price declined from its most recent peak. Data from the on-chain platform shows that the open interest rose from $989 million to $1.62 billion within the time frame. According to Glassnode, this decoupling situation must be closely monitored since it points to ongoing speculative positioning even as price momentum fades at the time of the report.
Featured image from Getty Images, chart from Tradingview.com
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