A possible loss of life cross setup appears to be taking form on Dogecoin’s weekly chart, with merchants now paying shut consideration.
The weekly MA 50 (50 WMA) has pulled downwards and may meet the 200 WMA within the coming weeks. If the 50 WMA falls beneath the 200 WMA following the convergence, a loss of life cross sign is likely to be confirmed.
Whereas golden and loss of life cross alerts aren’t new to Dogecoin, as a handful have appeared on short-term timeframes since its inception, the weekly chart stays an exception, having seen solely three such crossovers since February 2021. Two of those three situations are golden cross alerts, highlighting the rarity of a loss of life cross on its weekly chart.
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Particularly, this uncommon bearish technical sign has not appeared on its weekly chart in additional than three years. The final time Dogecoin noticed a loss of life cross on its weekly chart was in February 2023.
Will historical past repeat?
Dogecoin value motion has usually mirrored the character of the crossovers on its weekly value charts. In February 2021, when Dogecoin recorded a golden cross on its weekly chart, the worth elevated within the following months.
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Dogecoin noticed a 3,600% enhance after the worth rose from a low of $0.02 on February 1, 2021, to succeed in an all-time excessive of $0.74 in Might 2021.
An identical situation performed out in November 2024 following the looks of a golden cross on the weekly chart. Ranging from October of the identical yr, Dogecoin elevated for eight consecutive weeks, reaching a excessive of $0.48 in December 2024, earlier than receding.
Nevertheless, the one seen loss of life cross on the weekly chart produced a muted response, with Dogecoin value stagnation recorded within the aftermath. Dogecoin value traded in a spread for months following the February 2023 loss of life cross, with little momentum recorded shortly after the sign appeared.
On the time of writing, DOGE was buying and selling at $0.074.