Dogecoin (DOGE) fell 6.19% in the past 24 hours to trade at $0.2261 on Wednesday, August 14, mirroring the weakness across the broader cryptocurrency market.
Source: CoinMarketCap
Despite this drop, technical indicators and derivatives market activity point to potential bullish momentum.
A golden cross pattern, historically linked to large price gains, emerged earlier this week.
Alongside this, derivatives trading volumes have surged beyond $10 billion in the last 24 hours, prompting speculation of a possible 275% rally similar to past events.
Market participants are watching closely to see whether a repeat of the November 2024 rally is possible in the current market environment, with traders weighing both risks and rewards carefully before making strategic trading decisions in volatile conditions.
Golden cross signals possible upside
The recent golden cross — when the short-term moving average crosses above the long-term moving average — is a key bullish technical formation.
The last time this appeared was in November 2024, when DOGE prices rose by 276% to record highs under comparable market conditions.
If this pattern repeats, Dogecoin could climb to $0.769, setting a new all-time high. However, its success depends on sustained buyer momentum.
The Relative Strength Index (RSI) remains directionless, indicating that both buyers and sellers are closely watching for decisive moves.
Derivatives market volume hits $10 billion
While spot market participants continue to hold DOGE for the long term, derivatives traders have been notably active.
CoinGlass data shows Dogecoin derivatives volumes soared above $10 billion in the last 24 hours — a 31% increase.
Funding rates also point towards bullish sentiment, with long positions dominating.
A recent sharp rise in funding rates suggests traders are willing to pay more to maintain these positions, indicating confidence in a potential breakout.
This sustained interest in leveraged positions often fuels price swings, especially when market momentum builds.
Parallels with November 2024 rally
The current technical setup closely mirrors November 2024, when a golden cross coincided with strong derivatives interest and growing spot market accumulation.
That alignment drove DOGE to multi-month highs, and if repeated, could propel the token towards a projected 275% rally.
Traders note that the similarities between the periods extend beyond technical patterns to broader market sentiment.
A repeat rally would require the same level of market enthusiasm, coupled with consistent buying support from both retail and institutional investors to push past key resistance levels.
Market conditions remain watchful
Even with today’s price decline, bullish traders remain focused on the golden cross pattern’s potential.
The combination of technical signals, elevated trading volumes, and long-heavy derivatives positioning creates the possibility of significant volatility in the days ahead.
Achieving a major rally, however, will require consistent buying pressure to push through resistance levels and trigger sustained upward momentum.
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