Dogecoin’s Golden Cross Sparks Hype as Meme Coin Surges Over 100% in a Week

Dogecoin (DOGE) is making headlines once again, surging by over 140% in the past week, fueled by a technical indicator known as the “golden cross.”

This bullish signal, where the 50-day moving average crosses above the 200-day moving average, has traders buzzing with hopes of a repeat of Dogecoin’s previous 7,000% rally.

Cryptocurrency trader Mikybull Crypto noted the significance of this pattern on social media platform X (formerly Twitter), highlighting that the last time Dogecoin saw a golden cross, it was followed by an explosive 7,000% price surge.

“The majority here don’t seem to understand the implication of this golden cross that just occurred on $DOGE,” Mikybull wrote.

The trader implyed that history could repeat itself.

This technical signal is one of several recent factors pushing Dogecoin upward. The cryptocurrency’s rally aligns with a bullish trend across the wider crypto market, fueled by Bitcoin (BTC) reaching new all-time highs and an optimistic post-election outlook in the US.

Dogecoin’s connection to billionaire Elon Musk remains a crucial element of its price movement. In 2023, Musk briefly changed X’s logo to Dogecoin’s Shiba Inu mascot, triggering a surge in Dogecoin’s price. Musk has also been connected with Dogecoin through political discussions: following his recent support of US President-elect Donald Trump, Musk hinted at a humorous “Department of Government Efficiency,” or “DOGE,” that he could theoretically head.

Such social media mentions and influential figures have historically driven Dogecoin’s meteoric rises, as seen in its 2021 bull run when endorsements helped propel the token from a niche joke coin to a leading cryptocurrency.

Dogecoin’s recent climb isn’t isolated—altcoins, in general, are experiencing a resurgence. Ether (ETH) and other cryptocurrencies outperformed Bitcoin’s 27% weekly increase, with Ether climbing 41.6% and Dogecoin soaring past 100%. As Bitcoin’s price continues to reach new heights, crossing $85,000, investor interest is shifting towards riskier altcoins that offer higher potential returns.

Weekly altcoin trading volume exceeded $100 billion last week, reaching levels not seen since March, according to research firm Kaiko. Joe Flanagan, co-founder of the decentralized finance platform Maple, believes this rotation will continue as investors search for assets with greater upside potential.

“There’s strong interest in riskier assets beyond Bitcoin,” Flanagan said.

He noted that meme coins like Dogecoin have been particular beneficiaries. While high-risk, the speculative appeal of Dogecoin and other meme coins has drawn in investors looking for quick gains. Flanagan advised caution, however, as these coins tend to be volatile and lack the stability of larger assets like Bitcoin and Ethereum.

Dogecoin’s trading volume hit a yearly high of $29 billion last week, signaling that retail and institutional investors alike are paying attention to the Shiba Inu-themed cryptocurrency. Currently trading at $0.4142, Dogecoin has risen 47.44% in just the last day. Over the past year, it has seen a 421.41% increase, underscoring its consistent appeal even in a fluctuating market.

While Dogecoin is leading the pack, analysts also advise keeping an eye on other sectors within the crypto market. Decentralized finance (DeFi) tokens, for example, could benefit significantly under a regulatory environment that is expected to be more favorable to blockchain innovation in the coming years.

Investors are also watching “infrastructure tokens,” which play a role in expanding the actual use cases for cryptocurrencies beyond trading. These projects, according to analysts, are gaining ground as potential building blocks for future financial applications, suggesting that the crypto market is evolving in terms of both depth and utility.

Benzinga and Market Watch contributed to this report.