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After decisively breaking above the 50-day Exponential Moving Average, Dogecoin has shown signs of a possible trend reversal lately. In the past, the 50 EMA has served as a crucial barrier to distinguish between bullish and bearish trends. Assuming that Dogecoin is about to transition from its current downward trajectory to a new upward one, a break above it is frequently seen as a bullish signal.

Having overcome its 50-day EMA, DOGE is currently trading slightly above $0.104. Given that Dogecoin has been trading in a generally bearish pattern over the last few months, this development is significant because it may signal the start of a larger reversal. If this momentum continues, Dogecoin may see additional gains in the next few days.

The breakthrough above this level suggests renewed buying pressure. The potential for a golden cross adds to the intrigue of this scenario. When a long-term moving average like 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 in place of the death cross, which occurred when the 50-day EMA crossed below the 200-day EMA. A development of that kind would probably encourage even more bullish sentiment.

The 100-day and 200-day moving averages—$0.11 and $0.118—are important resistance levels to keep an eye on if Dogecoin is to keep moving higher. A break above these levels could confirm a reversal, indicating a return to bullish territory for DOGE.

Bitcoin Rate Cut Boost

After the recent rate cut of 50 basis points, which sparked a wave of capital inflows into the cryptocurrency market, Bitcoin (BTC) has seen a notable breakout. This bullish trend has lifted Bitcoin above significant technical milestones, suggesting that the most popular cryptocurrency may make a return earlier than expected.

Following the breakout, Bitcoin has risen above its 50, 100, and crucial 200 EMAs. This string of bullish breaks indicates that momentum is changing, and Bitcoin might be preparing for a long-term upswing. Around $68,000, the upper end of the declining price channel effective for most of 2024, is the next significant resistance level.

Breaking above the 200-day EMA is especially significant as it serves as a critical indicator for many institutional and long-term investors. With significant inflows onto the market, Bitcoin’s current price is above $62,000, indicating that this rally may continue. If Bitcoin surpasses the $68,000 barrier, it could initiate a more extensive rebound for the whole cryptocurrency market.

Past the $68,000 mark, previous all-time highs might be the next important levels to monitor, which could attract institutional and retail investors. Though sentiment is generally positive, Bitcoin still moves within a larger descending channel. A failure to break above $68,000 could lead to a retracement back to support levels around $60,000. However, for now, it appears that the bulls have the momentum, and Bitcoin is strengthening as it rises from its recent lows.

Toncoin’s Recovery Begins

With its long-desired $6 target now within reach, Toncoin is rapidly approaching a critical moment. While the asset is exhibiting bullish momentum at $5.77, traders should exercise caution because the 50-day Exponential Moving Average poses a formidable obstacle.

If TON succeeds in breaching this crucial barrier, it may surge rapidly towards $6. Conversely, if this does not occur, a significant retreat could follow. The technical picture indicates that TON is at a critical juncture.

Historically, the 50 EMA has been a strong resistance level, frequently serving as a divide between bullish and bearish trends. Currently, with TON’s price trading just below this level, a breakout could signify the asset regaining momentum. However, if this does not happen, a retracement back to earlier support levels at $5.50 or even $5.30 could be necessary. The formation of a double-top pattern on local time frames adds to the uncertainty.

If the $6 target is not reached soon, there may be an impending pullback due to this bearish chart pattern, which frequently signals a price decline. Before making any significant decisions, traders should be aware of this trend and wait for confirmation signals.

This article was originally published on U.Today