What The 50-Day Moving Average At $0.22 Says About The Dogecoin Price

The Dogecoin price has been preparing for a major bull rally since it rose to the $0.4 threshold and started testing this resistance. To shed light on Dogecoin’s future bullish trajectory, a crypto analyst discussed the importance of the $0.22. 50-day moving average (MA) in determining the Dogecoin price movements in this bull cycle.

How the 50-Day MA Affects the Dogecoin Price Rally

The 50-day MA is a technical indicator that shows the average price of a cryptocurrency over the past 50 trading days. It is mainly used to identify price trends, determine resistance and support levels, and generate buy and sell signals.

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Kevin, a crypto analyst at X (formerly Twitter), did just that underlined the significance of this critical technical indicator in the recent Dogecoin price movements and its influence on the meme coin’s future bull rally. The analyst made this historic announcement during Dogecoin’s previous bull marketsprice remained consistently above the 50-day MA and never lost this crucial threshold despite testing multiple times. Normally, a stay above the 50-day MA is seen as a bullish indicator, while a consistent decline below this average indicates a downtrend.

Presenting a detailed chart of Dogecoin price action in the last bull cycle in late 2020 so far, Kevin announced that the current 50-day MA for the meme coin is $0.22. However, this price threshold rises rapidly as Dogecoin closes each daily candle.

Furthermore, the rapid rise suggests that if Dogecoin can remain stable at or above the 50-day MA, its price should see a significant increase. bullish trend continuationcreating a strong foundation for even higher prices.

Dogecoin enters distribution phase, target of $9.5 in sight

In another X messageTrader Tardigrade, a prominent crypto market expert, stated that Dogecoin has officially entered the distribution phase in the classic Power of Three (PO3) market cycle. The PO3 cycle is a popular concept in technical analysis used to identify main market phases — Accumulation, distribution and manipulation.

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With Dogecoin now firmly in the distribution phase, large holders could lose their assets, potentially capturing profits after DOGE’s recent price increase. Although the distribution phase can be thought of as the end of a bull rally Characterized by sell-offs and slow momentum, Trader Tardigrade believes this phase could be quiet before a huge price surge.

The analyst shared two price charts comparing Dogecoin’s movements during the bull cycle between 2016 and 2017 with the future price action in 2024 and 2025. In the 2017 bull market, Dogecoin entered a distribution phase, leading to a significant bull rally to new levels above $0.00066.

If this trend holds true for Dogecoin’s current distribution phase, trader Tardigrade has predicted it to be the case price could rise as high as $9.5 from the current value of $0.4.

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