Dogecoin (DOGE), the eighth-largest cryptocurrency by market cap, is in an intriguing situation, with technical indicators creating a mixed outlook for its price.
While a death cross has appeared on the daily charts, signaling a potential bearish trend, the hourly charts show a different picture, with a golden cross appearing on the four-hour chart.
In technical analysis, a death cross occurs when a short-term moving average, such as the 50 MA, crosses below a longer-term moving average, such as the 200 MA. This pattern is generally interpreted as a bearish signal indicating a potential decline in price.
On the other hand, a golden cross occurs when the short-term moving average crosses above the long-term moving average, which is often interpreted as a bullish signal suggesting an upward price move.
The daily chart of Dogecoin recently showed a death cross as the 50-day moving average fell below the 200-day moving average. Despite the bearish outlook on the daily chart, the 4-hour chart of Dogecoin paints a different picture. A “golden cross” has formed, with the MA crossing above the 200 MA. This suggests that Dogecoin may experience a price increase in the short term.
Dogecoin is currently experiencing a price rebound after declining for five days in a row. At the time of writing, Dogecoin is up 3.03% in the last 24 hours to $0.132.
Implied
Dogecoin’s current technical indicators tell an intriguing story. The death cross on the daily chart suggests caution, while the golden cross on the four-hour chart offers a glimmer of hope for bullish traders.
The appearance of both the Death Cross and the Golden Cross on two different time frames reflects mixed market sentiment: caution and optimism.
Some traders consider moving average (MA) crossovers to be lagging indicators that often coincide with trend exhaustion and lure investors to the wrong side of the market. MA studies often rely on historical data and tend to lag prices. For example, a death cross can indicate a bear market bottom.
This divergence, as seen in Dogecoin’s price, points to a mixed outlook and highlights the importance of considering multiple time frames when analyzing the market.
