U.Today – After decisively breaking above the 50-day exponential moving average, it has shown hints of a possible trend reversal lately. In the past, the 50-day EMA has served as a crucial barrier to distinguish between bullish and bearish trends. Assuming that Dogecoin is about to turn from its current downward trajectory to a new bullish one, a break above it is frequently considered a bullish signal.
Having broken above its 50-day EMA, DOGE is currently trading slightly above $0.104. Since Dogecoin has been trading in a generally bearish pattern for the past few months, this development is significant because it may signal the beginning of a larger reversal. If this momentum continues, Dogecoin may see additional gains in the coming days.
A break above this level suggests renewed buying pressure. The possibility of a golden cross adds to the intrigue of this scenario. When a long-term moving average such as the 200-day EMA crosses above the short-term moving average in this example, the 50-day EMA, a golden cross is formed.
The current breakout gives hope that Dogecoin may eventually invalidate this bearish pattern and trigger a golden cross instead of the death cross, which 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 important resistance levels to watch if Dogecoin wants to continue rising. If DOGE breaks above these levels, signaling a return to bullish territory, it could confirm a reversal.
Following the recent 50 basis point rate cut, which triggered a wave of capital inflows into the cryptocurrency market, (BTC) has seen a notable breakout. This uptrend has lifted Bitcoin above important technical milestones, suggesting that the most popular cryptocurrency may make a comeback sooner than most people expected.
Bitcoin rate cut boost
Following the breakout, Bitcoin has broken above its 50, 100, and even the crucial 200 EMA. An indication that momentum is shifting and that Bitcoin could be gearing up for a long-term rally is this series of bullish breakouts. Around $68,000, or 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 act as important barriers to entry, breaking above them is a strong technical signal. When they are broken, it means there is a positive change in market sentiment.
Since the 200-day EMA is a crucial indicator for many institutional and long-term investors, Bitcoin's breakout above it is especially significant. Since there have been significant inflows into the market, the current price of Bitcoin is above $62,000, and it seems that this rally may continue. If Bitcoin manages to break above the $68,000 barrier, it may signal the beginning of a broader rally for the entire cryptocurrency market.
Beyond the $68,000 mark, previous all-time highs could be the next important levels to watch, which could spark the interest of institutional and retail investors once again. Although the sentiment is generally positive, it is crucial to note that Bitcoin is still moving within a larger descending channel.
Failure to break above $68,000 could lead to a pullback towards support levels around $60,000. However, at least for the moment, it seems that the bulls have the momentum and Bitcoin is gaining strength as it climbs from its most recent lows.
Toncoin recovery begins
Now that its long-awaited target of $6 is within reach, Toncoin is fast approaching a critical moment. While the asset is showing bullish momentum at $5.77, traders need to be careful as the 50-day exponential moving average is a formidable obstacle.
If TON manages to break through this crucial barrier, it could quickly rally towards $6. However, if it fails to do so, it could suffer a significant pullback. The technical picture indicates that TON is at a critical juncture.
Historically, the 50 EMA has been a strong resistance level and often serves as a dividing line between bullish and bearish trends. As TON price is currently trading just below this level, a breakout could signal that 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 formation of a double top pattern on local time frames increases uncertainty.
If the $6 target is not reached soon, a pullback may be imminent, according to this bearish chart pattern, which often signals a price decline. Before making any major decisions, traders should keep an eye on this trend and wait for confirmation signals.
This article was originally published on U.Today
