By the weekend, the volatility of cryptocurrency markets tends to calm down, and most assets start to consolidate or return to their previous values. However, there are a few crucial signals that we must report on. Dogecoin (DOGE) Reverses, But Golden Cross Occurs, Hinting at Massive Rally
Dogecoin (DOGE) Golden Cross
The golden cross is one of the most accurate tools for determining long-term trend changes over longer time frames, such as a day or a week.
In the case of Dogecoin, the golden cross signal has formed after two huge rallies, the first of which happened at the end of October and the second in November. The two exponential moving averages have periods of 50 and 200 days, respectively.
This might be the beginning of a long-term uptrend in Dogecoin’s price. Speculative traders who had been unloading their meme coin holdings as fast as they could in anticipation of a local correction might take this as a warning. Even a minor mid-stride rally on the canine-decorated coin was frequently cut short by local corrections.
Several historical analyses of assets with levels of volatility similar to Doge showed that the trend reversal signal was right most of the time. This means that it could be a useful tool for technical analysis that could be used in financial trading.
Ethereum’s failed breakout
The price of Ether, the second largest cryptocurrency on the market, reversed back below the $1,300 price threshold after failing to break through the existing resistance level represented by a 200-day moving average.
While it may be tempting, it is still too early to call it a day. The market is about to enter the weekend trading session, during which most market participants will refrain from trading, making the market less liquid and sometimes less volatile, so the inability to break the resistance level may be temporary.
When trading starts back up on Monday, both the volume and liquidity of Ethereum, as well as its volatility, are likely to return to normal. Investors in cryptocurrencies should be feeling bullish after Jerome Powell’s dovish speech on future rate hikes and the health of the U.S. economy.
Market blossoming
The cryptocurrency market may have hit rock bottom at the beginning of the month due to the FTX implosion, but things are looking up as of late. Most assets showed single-digit or even double-digit gains heading into December, sending out important market signals that may portend a slow but steady recovery for the market in 2019.
When the dust settles around FTX and traditional financial markets start to recover, it’s possible that the cryptocurrency market will start to grow again, ending the downward trend that started at the end of 2021.
Source: U.today
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