Dogecoin Eyes 275% Surge as Golden Cross Fuels Bullish Momentum

Key Insights

• Dogecoin price forms a golden cross, a bullish technical signal that last triggered a 276 percent surge in November 2024.
• Derivatives trading volumes in Dogecoin surpass $10 billion within 24 hours, showing heightened market participation from traders.
• Funding rates show long positions dominating, indicating traders are paying more to maintain bullish bets despite short-term volatility.

Dogecoin slipped 3.59% on August 14 to trade at $0.237, mirroring broader cryptocurrency market retracements. Despite the drop, a technical signal known as a golden cross remains active, indicating a possible continuation of bullish momentum.

The golden cross is shaped in the earlier days of this week and happens when a short-term moving average is seen crossing over a long-term moving average, and it has a possible upward price potential. Previous to this, the price of Dogecoin had this trend in November 2024 when the price rose up by 276%. The situation on the markets today is supposed to be the same with the mood of investors remaining optimistic once again.

Prices are Projected at Record Highs

Assuming that the same price trajectory is extended into the future, either way implying that Dogecoin may grow by a further 276% to reach about $0.769. This would move the token to a new all-time high. However, the signal remains effective provided that there is continued buyer participation because recent trends of moving averages in the relative strength index reflect both a positive and negative attitude towards the seller and buyer.

Source: TradingView

The interest in Dogecoin derivatives has reached the sky with more than 10 billion worth of trading volume in the past 24 hours, Coinglass resources indicated. The increase in the number of transactions in derivatives implies the intensified willingness of those traders to consider the possible rise of prices.

Funding Rates Largely Made up of Long Positions

Funding rates, or whether or not traders have to pay a premium to hold positions, have surged. This trend indicates that long positions are the ones prevailing at the moment, and traders are ready to offer higher prices to maintain a long position, as they believe in the bull position.

Although price action within the short term is not yet convincing, the fact that there is a rising volume of derivatives coupled with high long holds, together with the occurrence of the golden cross indicator, indicates high-level bullish attitudes. In case of strengthening buying pressure, Dogecoin might repeat the already seen results, in which case it would be able to surpass previous record highs.

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