U.Today – After a powerful breakout of the 50-day exponential moving average, there have been signs of a possible trend reversal recently. Historically, the 50 EMA has been a key barrier that differentiates between uptrends and downtrends. Assuming Dogecoin is in the process of transitioning from its current downtrend to a modern uptrend, a breakout of it is often seen as a bullish signal.
Having broken through the 50-day EMA, DOGE is currently trading slightly above $0.104. Considering that Dogecoin has been trading in a generally bearish pattern over the past few months, this development is significant as it could signal the beginning of a larger reversal. If this momentum continues, Dogecoin could post additional gains over the next few days.
A break above this level suggests renewed buying pressure. The potential for a golden cross adds to the intrigue of this scenario. When a longer-term moving average, such as the 200-day EMA, crosses the shorter-term moving average in this example, the 50-day EMA forms a golden cross.
The current breakout provides hope that Dogecoin could finally invalidate this bearish pattern and trigger a golden cross in place of the death cross that occurred when the 50-day EMA crossed below the 200-day EMA. Such a development would likely encourage even more bullish sentiment.
The 100-day and 200-day moving averages or $0.11 and $0.118 are vital resistance levels to watch if Dogecoin is to continue to rally. Indicating a return to bull territory for DOGE, a breakout of these levels could confirm a reversal.
After the recent 50 basis point rate cut that sent a wave of capital inflows into the cryptocurrency market, (BTC) has seen a significant breakout. This bullish trend has lifted Bitcoin past significant technical milestones, suggesting that the most popular cryptocurrency could be making a comeback sooner than most people expected.
Bitcoin price drop increases
Following the breakout, Bitcoin rose above its 50, 100, and even key 200 EMAs. A clue that momentum is changing and that Bitcoin may be preparing for a long-term rally is this series of bullish breakouts. Around $68,000, the upper end of the descending price channel that has been in place for most of 2024, is the next significant resistance level.
Since these moving averages often serve as vital entry barriers, a break through them is a powerful technical signal. When they are broken, it indicates a positive change in market sentiment.
Since the 200-day EMA is a key indicator for many institutional and long-term investors, a breakout of Bitcoin above it is particularly significant. With significant inflows into the market, the current price of Bitcoin is above $62,000 and it seems that this rally could continue. If Bitcoin manages to break above the $68,000 barrier, it could signal the beginning of a more extensive rebound for the entire cryptocurrency market.
After breaking above $68,000, previous all-time highs could be the next vital levels to monitor, which could rekindle interest from institutional and retail investors. While the sentiment is generally positive, it is vital to remember that Bitcoin is still trading within a larger downtrend channel.
Failure to break above $68,000 could lead to a pullback to support levels near $60,000. However, for now, bulls appear to have momentum, with Bitcoin strengthening, rising from recent lows.
Toncoin recovery begins
With the long-awaited $6 target within reach, Toncoin is quickly approaching a critical juncture. While the asset is showing bullish momentum at $5.77, traders should remain cautious as the 50-day exponential moving average is a major obstacle.
If TON manages to break through this vital barrier, it could surge towards $6. However, if it fails to do so, a significant reversal could occur. The technical picture indicates that TON is at a critical juncture.
The 50 EMA has historically been a powerful resistance level, often serving as a divide between bullish and bearish trends. With TON currently trading just below this level, a breakout could indicate the asset is regaining momentum.
However, if this does not happen, a pullback to previous support levels at $5.50 or even $5.30 may be necessary. The double top formation on the local time frame increases uncertainty.
If the $6 target is not reached soon, an impending pullback could be in order, in line with this bearish chart pattern that often signals a decline in price. Traders should be aware of this trend and wait for confirming signals before making any significant decisions.
