Dogecoin (DOGE) surprisingly gained a significant 7.36% in the last 24 hours, marking a major milestone with the first Moving Average Convergence Divergence (MACD) golden cross on January 20. Analyzing the DOGE weekly chart, Trader Tardigrade explained this exciting development and suggested that the cryptocurrency may be ready for a long upward trajectory. Here are the details…
Critical signs for Dogecoin
The MACD “golden crossover” indicating an uptrend occurred when a short-term Moving Average crossed over a long-term major Moving Average. Amidst this volatility, speculation is emerging regarding the possible addition of DOGE to the X Payments platform. This speculation has been fueled by the recent launch of X Payments, the financial arm of the Elon Musk-led X (formerly Twitter) platform.
Entrepreneur Elon Musk, who bought Twitter and rebranded it as X, has been a vocal supporter of Dogecoin. Musk’s previous hints of integrating DOGE as a payment option for his “Everything app” have now gained momentum with the launch of X Payments. Fortune reported in January 2023 that the company was considering incorporating cryptocurrency payments, further raising expectations within the Dogecoin community. Although Musk has not officially confirmed the plans, the community remains optimistic, citing Tesla’s acceptance of DOGE as payment and public statements expressing Musk’s continued interest in memecoin.
Another run in DOGE
The rise in Dogecoin’s price was catalyzed by the X Payments announcement, pushing DOGE/USD to $0.090. However, resistance at this level led to a pullback to $0.085 at the time of writing. The Relative Strength Index (RSI) peaked at 76.72, indicating overbought conditions, which may have triggered subsequent selling. Examining the DOGE/USD 4-hour chart, the Fibonacci retracement shows that $0.082 is potential support at the 0.618 Fib level. Despite the pullback, the MACD golden cross and increasing buying pressure indicate the possibility of DOGE reaching $0.11 in the short to medium term.
The price of $0.11 aligns with the 3.618 Fibonacci level, indicating a potential bullish trajectory. The most important factor affecting Dogecoin’s future trajectory lies in the updates from X Payments and Elon Musk. If X Payments integrates DOGE as a payment option, it could push the cryptocurrency towards the elusive $1 price prediction. On the contrary, if Musk decides not to add DOGE to the platform, the path to $1 may face increasing difficulties. While the Dogecoin community awaits further developments, the market remains dynamic, responding to both technical indicators and external influences. Currently, Dogecoin is up 8 percent.
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