Dogecoin DOGE/USD has rallied handsomely this week, but as the “King of memes coins” gains momentum, the next question on traders’ minds is whether it would be able to sustain the spike.
What happened: The dog-themed cryptocurrency lifted over 9% in the last 24 hours, fueled primarily by its "biggest" supporter, Elon Musk, who sold the idea of the so-called Department of Government Efficiency, popularly called ‘"DOGE," while campaigning for former President Donald Trump.
The latest rally pushed Dogecoin's weekly gains to over 24% and monthly gains to 32%.
Widely-followed cryptocurrency trader Bluntz said that Dogecoin's strongest move typically comes at the end of the cycle after Bitcoin BTC/USD has reached all-time highs.
"Legit from rock bottom to 30x in the space of a few weeks," the trader added. "Yes we have new flashy memes now, but writing Doge off as dead would be a huge mistake, imo."
Dogecoin's bullish potential was also highlighted by Kevin, a well-known analyst, who stated in an X post, "Weekly golden cross on Dogecoin is imminent folks. First time in 4 years."
For the unknown, a Golden Cross is a technical chart pattern indicating the potential for a major rally.
Why It Matters: Several technical indicators flashed a bullish signal for Dogecoin, according to data from charting platform TradingView.
One of the most popular tools, the Moving Average Convergence Divergence (MACD) indicator, flashed a buy signal.
The MACD is primarily used to gauge an asset’s overall trend. The crossover of the signal line and the MACD line gives trading signals.
Similarly, the Momentum Indicator, which compares the current price with the previous price from several periods ago, showed a positive value, indicating a bullish sentiment.
That said, the Relative Strength Index (RSI) was still neutral as of this writing.
Additionally, DOGE's net exchange inflows dropped 63% in the last 24 hours, as per IntoTheBlock, potentially indicating a slowdown in sell pressure.
Price Action: At the time of writing, Dogecoin was exchanging hands at $0.1348, up 10.53% in the last 24 hours, according to data from Benzinga Pro.
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