An analyst has pointed out how a Dogecoin indicator could be about to show a crossover that proved bullish the last two times for the DOGE price.
Dogecoin May Be About To Show A Bullish MACD Crossover
As explained by analyst Ali Martinez in a new on X, a MACD crossover could be about to happen for DOGE soon. The “Moving Average Convergence/Divergence” (MACD) is a technical analysis indicator momentum indicator tracking the difference between two Exponential Moving Averages (EMAs) of an asset. The EMAs that the metric typically uses are the 26-period and the 12-period ones. The latter is subtracted from the former to get the indicator’s value and the line on which these values are plotted is known as the MACD line.
There is also another line relevant to the indicator called the signal line, which is just the nine-period EMA of the MACD line. The crossovers between these two lines can serve as buy or sell signals for the given asset.
Now, here is the chart shared by the analyst, which shows the trend in the MACD for the Dogecoin weekly price over the past year or so:
As displayed in the above graph, the Dogecoin MACD and its signal line have recently come close to touching each other. Currently, the signal line is above the MACD line, but if they continue in their recent trajectories, then their arrangement could be reversed.
A crossover of this type is generally considered a bullish sign. In the chart, Martinez has highlighted what happened the last two times that the DOGE weekly price witnessed this trend.
“The last two times Dogecoin $DOGE had a MACD bullish crossover on the weekly chart, it rallied 90% and 180%, respectively,” notes the analyst. Given this trend, it’s possible that the meme coin could benefit from a price boost this time as well, should the crossover take place.
In some other news, the DOGE Active Addresses have shot up to pretty high levels recently, as Martinez has pointed out in another X .
The “Active Addresses” indicator keeps track of the total amount of Dogecoin addresses that are taking part in some kind of transaction activity on the network every day. In the latest spike, the metric has reached a high of of 84,306, which is the highest that it has been in around six months. Thus, it would seem that users have been quite active with their trades recently.
From the chart, it’s apparent that the trigger for the spike has been the plunge that DOGE has witnessed recently. Investors generally make panic moves when volatility occurs, so this trend isn’t too unusual.
DOGE Price
At the time of writing, Dogecoin is trading around $0.105, down almost 4% over the past week.
Featured image from Dall-E, Santiment.net, chart from TradingView.com
Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.
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Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.
In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.
Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.
Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..
Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.
Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.
As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.
Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.
Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.
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