- Dogecoin is gearing up for a potential golden cross, which could reinforce bullish expectations.
- However, the continuing whale dump of its supply could threaten optimistic forecasts.
The Dogecoin (DOGE) community just celebrated Doge Day, also known as D-Day, on April 20 or 4/20. However, similar to the coin’s previous reception to the event, its price action was only mild, to say the least. Meanwhile, the prospects of analysts, traders, and investors on the meme coin are somewhat mixed.
The Doge Day celebration only nudged Dogecoin prices between $0.15 and $0.16 over the last 24 hours, which was still a far cry from its $0.48 peak last November and all-time high (ATH) of $0.73 four years ago. Nevertheless, it’s worth noting that the move still represented a roughly 6% rally from yesterday and the present. In addition, the trend fairly mirrored DOGE’s trajectory last year as the crypto community focused on the historic fourth Bitcoin (BTC) halving.
Dogecoin Approaches a Golden Cross
As of writing, Dogecoin is primed for a golden cross in the 9-day and 21-day moving averages (MA). If the short-length MA does indeed intersect with the longer trend to form the much-awaited golden cross, it could prepare DOGE for a potentially bullish reversal from its sliding values since January.
The pattern would also reinforce the “93-day bull run” projection of the pseudonymous Trader Tardigrade on X that we touched on earlier. At this point, it’s important to observe whether the meme coin has enough trading volume to sustain the optimistic view of the analyst, as its failure to gain a significant boost in interest could tame bullish expectations.
Selling Pressure Builds
Unfortunately, the gradual supply dump of whales, as observed by Ali Martinez, a popular crypto trader and technical analyst on X, might deter Dogecoin from achieving traction. According to him, whales have unloaded over 570 million DOGE in the market during the past week.
The event warns of a corresponding volatility in the meme coin’s values in the coming days. The ensuing selling pressure could suppress its move toward the anticipated Golden Cross.
In addition, the selling pressure may be amplified by macroeconomic factors, particularly the intensifying trade war between the US and China, which is pushing the world economy to the brink of a likely recession. On the other hand, DOGE may potentially continue to ride on the coattails of Bitcoin as the premier crypto asset is gaining significant traction as an inflation hedge in these trying times. However, one must not expect for Dogecoin to soar significantly if investor interest will remain heavily grounded on Bitcoin and gold because such an event would mostly take away altcoin market share.
Incoming 500% Pump
Steph is Crypto, another popular analyst on Twitter Crypto, claimed Dogecoin may have reached its bottom in his 43-bar and 129-day cycle. In this case, he said it could prime the meme coin to a 500% rally in the next few weeks.
Not all agree with him, though, as the broader crypto market appears to be inkling for a further downtrend. Nonetheless, the realization of such a forecast—given the approaching Golden Cross—could propel the digital asset slightly past its prevailing ATH.
