Dogecoin's Golden Cross Sparks Bullish Momentum Ahead

• Dogecoin (DOGE) has confirmed a golden cross in its key price averages, indicating strong bullish momentum.

• The cryptocurrency is facing immediate resistance at 21.7 cents, a price point that previously limited gains in March.

Market Reactions to Political Developments

Donald Trump's return to the White House has positively impacted the cryptocurrency market, leading to the emergence of a dogecoin golden cross. This technical pattern suggests a potential continuation of upward movement for the meme-inspired cryptocurrency.

Understanding the Golden Cross

A golden cross occurs when the 50-day simple moving average (SMA) crosses above the 200-day SMA. This event typically signals that an asset's short-term price momentum is outperforming its long-term trend, often leading to a significant bull run.

On Wednesday, DOGE's 50-day and 200-day SMAs confirmed this golden cross, with prices surging over 15% to reach the resistance level of 21.7 cents. This level corresponds to the 23.6% Fibonacci retracement of the prolonged bear market that ended in June 2022.

Key Resistance and Potential Outcomes

The presence of the golden cross indicates that momentum may be strong enough to surpass the Fibonacci retracement level that previously capped gains in March, which resulted in a decline to 8 cents by August.

Short-term traders are monitoring the 23.6% retracement level for signs of a trend reversal or strength. A decisive breakout above 21.7 cents could attract more buyers and shift focus to the October 2021 high of 35 cents.

Conversely, if DOGE fails to maintain a position above this level, it could weaken the bullish outlook and lead to a decline toward the 200-day SMA support at 12.75 cents.

As of now, DOGE is trading at 19.7 cents on Binance, according to TradingView.