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**Dogecoin (DOGE) Price: Golden Cross Formation Signals Potential Rally in August**
Dogecoin’s (DOGE) recent 30% decline from its July peak of $0.28 has led the cryptocurrency to test crucial support at $0.19. Despite this pullback, traders remain optimistic, as a golden cross formation has emerged, potentially paving the way for a rally in the near future.
The DOGE price chart has taken a downturn since reaching a five-month high near $0.28 on July 21, with prices plummeting to around $0.19. This decline has pushed momentum indicators into reset mode, signaling potential buying opportunities.
Despite this correction, the long-term outlook remains favorable. A golden cross between the 20-day and 200-day exponential moving averages has emerged in late July, indicating that bulls are still firmly in control of the market. To confirm the trend’s resilience, it would be essential for DOGE to hold above both the 50-day and 200-day EMA support.
Should this occur, the door opens for a potential rebound towards $0.22. Even further upside could be targeting the $0.22-$0.24 range if buying pressure is sustained.
However, there are mixed signals emerging from momentum indicators. The RSI daily indicator has plummeted from extremely overbought levels above 80 to below 50, indicating a significant cooling of market enthusiasm. Simultaneously, the MACD line recently flipped bearish, implying the recent rally has lost steam.
As DOGE price action nears the $0.19 support level, sentiment is mixed. Although this pullback may provide an entry point for traders looking to accumulate at the current levels, a failure of support could lead bears to target next major resistance zones at $0.17 and $0.15.
Source: coincentral.com
