The Dogecoin Price has started a new climbb above $0.4 for the first time in more than three years levels not seen since the bull market of 2021. The meme coin in particular is up about 55% in the past 24 hours, further reflecting the bullish sentiment. Interestingly enough, this latest move on the tech charts has caught the attention of crypto enthusiasts, and some analysts predict that the popular meme coin could be ready to create a new all-time record.

According to a crypto analyst, a bullish indicator known as the “golden cross” recently appeared on Dogecoin’s weekly chart, paving the way for a new all-time high very soon.

Analyst highlights Golden Cross on Dogecoin price weekly chart

A golden cross is created when the 50 moving average (a short-term price average) on a price chart crosses above the 200 moving average (a long-term price average). This technical indicator is often seen as a bullish signal and is even very rare on longer time frames such as the weekly chart. When it appears, it can be the beginning of significant upward momentum.

In the case of the Dogecoin price, this golden cross is on the weekly time frame was observed by a crypto analyst who goes by the name Mikybull Crypto on social media platform X. Interestingly enough, this has only happened a few times in history for the Dogecoin price. He pointed out that the last time this pattern emerged for Dogecoin was in the last quarter of 2020, just before the highest Dogecoin rally yet.

The final golden cross on the weekly chart signaled the start of the 2021 rally, which saw the coin skyrocket from fractions just under $0.004 to well over $0.73 within a few months.

Why a $4 target could be possible this cycle

Milkybull Crypto highlighted possible targets for the Dogecoin price after pointing out the golden cross. Interestingly enough, the price prediction is based on the alignment of the Fibonacci levels with the Dogecoin performance after the last golden cross. Analysts often use these levels to identify possible future price points where assets may encounter resistance or find support during an up or down trend.

According to Mikybull Crypto, the Fibonacci extension levels indicate that a rally towards $2 to $4 could be feasible for Dogecoin in this cycle. Notably, the main resistance could be encountered at the 1.618 Fib level when projected from the golden cross, which is around $2.4464.

At the time of writing, Dogecoin is trading at $0.4278 and is only about 70% away from creating an all-time high. A continued rally to all-time highs is highly likely at this point, as the meme coin is already up 156% in the past seven days. If Dogecoin were to reach $2 and $2, this would represent a return of 370% and 835% respectively from the current price.

Featured image created with Dall.E, chart from Tradingview.com