Dogecoin (DOGE), the king of the meme coins, has formed a golden cross as the asset shows signs of rebounding from its weekly low. The meme coin has been on a decline in the last seven days amid broader market fluctuations. This technical signal suggests a bullish recovery for DOGE.
Golden cross signals possible DOGE recovery
The formation of a golden cross indicates that the short-term moving average has crossed over the long-term one. This technical signal is often interpreted by traders as a buy signal for a potential price increase for an asset.
CoinMarketCap data shows that Dogecoin moved from a daily low of $0.08744 to hit a peak of $0.09157. As of this writing, Dogecoin is exchanging hands at $0.09039, which represents a 1.13% increase in the last 24 hours.
Dogecoin Price Chart | Source: TradingView/CoinMarketCapThe trading volume has soared by a massive 87.16% to $1.12 billion within the same time frame. The uptick is primarily driven by a derivatives-led volume surge and whale accumulation. A notable whale reportedly bet $359,000 long on DOGE on Binance futures.
If there is sustained open interest and volume stays above the $1 billion level, Dogecoin is likely to continue on upward price momentum.
The current volume spike is a reversal from its outlook on March 6, when DOGE lost 50% of its volume. The decline in volume came as trading activities nosedived, especially on the derivatives market. Dogecoin’s volume usually has a direct correlation with its price action, and the current rebound indicates positive support.
However, traders need to watch out for volatility, as technical signals show the Relative Strength Index (RSI) has dropped to 40.94. Therefore, the meme coin is only likely to leverage the golden cross and sustain the current tempo if meme coin interest remains.
Can Dogecoin overcome volatility risks to hit $1.60?
As U.Today, a pseudonymous crypto analyst, Trader Tardigrade, remains bullish on Dogecoin. He believes that the meme coin has the potential to soar to a new high before the end of 2026. The trader predicts a price target of $1.60.
Dogecoin would need to increase by approximately 1,670%, or about 16.7 times its current value, to reach $1.60. This would be a huge leap if it happens, given the market-wide crypto poor performance in recent times.
Meanwhile, Dogecoin closed February in the red due to broader market slips. The development marked the fifth month that the meme coin has finished below its monthly average, to the disappointment of market participants.
Source: https://u.today/dogecoin-volume-up-87-golden-cross-teases-rebound
