As a seasoned analyst with over two decades of experience in the financial markets under my belt, I’ve seen my fair share of market trends and indicators. The Dogecoin (DOGE) MACD crossover that analyst Ali Martinez has pointed out is indeed intriguing.
A financial expert has highlighted the possibility of a technical signal in Dogecoin, where its indicator may soon display a crossover pattern. Remarkably, this same pattern has previously led to price increases for Dogecoin on the two most recent occasions.
Dogecoin May Be About To Show A Bullish MACD Crossover
According to analyst Ali Martinez’s latest post on X, there might be an imminent MACD crossing for DOGE. The MACD, or Moving Average Convergence/Divergence, is a technical analysis tool that monitors the gap between two Exponential Moving Averages (EMAs) of an asset. In most cases, it uses EMAs based on 26 and 12 periods. By subtracting the shorter period EMA from the longer one, we obtain the MACD’s value, which is then plotted as the MACD line.
Additionally, there’s a significant line related to the indicator known as the ‘signal line’. This line is simply an average moving of the MACD line over the past nine periods. When these two lines intersect, they can provide trading signals for buying or selling the specified asset.
Here’s a chart provided by our analyst displaying the movement in the Moving Average Convergence Divergence (MACD) for Dogecoin’s weekly pricing during the last year approximately.
According to the graph, you’ll notice that the Dogecoin Moving Average Convergence Divergence (MACD) and its signal line have been getting quite close recently. At present, the signal line is higher than the MACD line, but if they keep moving as they have been, the order could potentially change.
This particular crossover pattern is typically interpreted as a bullish indication. In the provided chart, Martinez has marked the instances where the Dogecoin (DOGE) weekly price experienced this pattern in the past.
According to the analysis, the occurrence of a MACD bullish crossover on Dogecoin’s weekly chart in the past has led to significant rallies of 90% and 180%. If this pattern repeats itself, there’s a chance that the meme coin could experience another price increase if the crossover happens again.
Meanwhile, it’s worth noting that Dogecoin Active Addresses have spiked to significant heights lately, a fact emphasized by Martinez in a different posting.
The “Active Addresses” measure tallies up the number of Dogecoin accounts engaged in transaction actions daily on the network. In a recent surge, this figure peaked at 84,306 – its highest point in approximately six months. This suggests that users have been quite busy with their trading activities lately.
It’s clear from the graph that the sudden increase in DOGE is likely due to its recent drop. Such reactions among investors, who often act impulsively during volatile periods, are not uncommon occurrences.
DOGE Price
At the time of writing, Dogecoin is trading around $0.105, down almost 4% over the past week.
Read More
Sorry. No data so far.
2024-10-03 09:40