Dogecoin (DOGE), widely recognized as the leading meme coin, is on the verge of a bullish technical formation a golden cross on its hourly chart. This pattern, which emerges when a short-term moving average crosses above a longer-term one, often suggests upward price momentum. In this case, the 9-day moving average is set to cross above the 26-day average around the $0.2331 price level.

DOGE Faces Price Dip Despite Bullish Setup

At the time of writing, Dogecoin trades at $0.2241, marking a 2.37% decline in the last 24 hours. Earlier in the day, DOGE reached an intraday high of $0.2446 before retreating due to broader market volatility. The price drop aligns with a market-wide correction impacting numerous altcoins. Moreover, the dip was exacerbated by profit-taking activity within the Dogecoin community, which triggered a wave of selling pressure.

_{Dogecoin Price Chart. Source: TradingView}

Despite the recent dip, technical indicators suggest a possible trend reversal. The relative strength index (RSI) on the hourly chart remains at a level that could support bullish momentum. If the golden cross materializes as expected, it might catalyze a price rebound. On-chain analyst Ali Martinez believes Dogecoin has the potential to rise toward $0.46, provided it finds reliable support at $0.26.

Whale Activity Signals Growing Interest

Meanwhile, Dogecoin witnessed a notable surge in whale activity at the beginning of the trading week. Large investors moved approximately 180 million DOGE. If these whales resume accumulation, it could positively influence DOGE’s short-term price action, as large holders often sway retail sentiment and market dynamics.

Related article: Dogecoin (DOGE) Surges 7% in 24 Hours: Is $0.30 Next?

Despite short-term fluctuations, Dogecoin continues to defy long-term bearish patterns. DOGE has already broken a six-year ultra-bearish trend during the third quarter. So far this quarter, the meme coin has posted an impressive 53% gain, signaling renewed optimism among investors.

While Dogecoin currently faces short-term selling pressure, the impending golden cross and increasing whale activity may provide the momentum needed for a price recovery. If support holds near $0.26, as analysts suggest, DOGE could resume its upward trend in the coming sessions.