What does the 50-day Moving Average at $0.22 say about the price of Dogecoin?

Dogecoin has been preparing for a massive rally since rising to $0.4 and started testing this resistance. Shining light on Dogecoin's future bullish trajectory, a cryptocurrency analyst discussed the importance of the 50-day Moving Average (MA) of $0.22 in determining Dogecoin's price movements during this bullish cycle. How does the 50-day MA affect the Dogecoin price increase? The 50-day MA is a technical indicator that highlights the average price of a cryptocurrency over the last 50 days of trading. It is primarily used to determine price trends, identify resistance and support levels, and generate buy and sell signals. Kevin, a cryptocurrency analyst on X (formerly Twitter), emphasized the importance of this important technical indicator in recent Dogecoin price fluctuations and its impact on the future price increase of this meme currency. The analyst revealed that in history, in previous Dogecoin price increases, its price has always been above the 50-day MA, never losing this important threshold despite many tests. Typically, maintaining above the 50-day MA is considered a bullish indicator, while continuously dropping below this average level indicates a downward trend. Present a detailed chart of the price movement of Dogecoin in the last bull cycle from the end of 2020 to now, Kevin revealed that the current 50-day MA of this meme coin is $0.22. However, this price threshold is increasing rapidly as Dogecoin closes each daily candle.

In addition, the rapid increase indicates that if Dogecoin can maintain stability around or above the 50-day MA, its price will continue to significantly increase, creating a solid foundation for higher prices. Dogecoin enters the distribution phase, aiming for $9.5 in sight In another post on X, Trader Tardigrade, a well-known expert in the cryptocurrency market, declared that Dogecoin has officially entered the Distribution phase in the classic Power of Three (PO3) market cycle. The PO3 cycle is a common concept in technical analysis used to identify the main phases of the market — Accumulation, Distribution, and Manipulation. With Dogecoin currently in the Distribution phase, large holders may be selling off their assets, possibly locking in profits after DOGE's recent price surge. While the distribution phase may be seen as the end of a characteristic price surge marked by sell-offs and slow upward momentum, Trader Tardigrade believes this phase could be calm before a strong price increase. The analyst has shared two price comparison charts of Dogecoin's movements during the price increase cycle from 2016 to 2017 and price movements in the future in 2024 and 2025. In the 2017 bull market, Dogecoin entered a distribution phase, leading to a significant price increase to a new level above 0.00066 dollars.

If this trend continues in line with Dogecoin's current distribution phase, Trader Tardigrade has predicted that the price of this token could skyrocket to $9.5 from its current price of $0.4.