Risk appetite in financial markets has increased amid hopes of a Fed pivot. However, cryptocurrencies lag behind with the exception of a few coins. Dogecoins DOGE/USD was an outperformer among the top cryptocurrencies this week.
What happened: Doge started Monday’s session at $0.077 and stayed mostly below $0.082 through Thursday. After closing Thursday’s session at $0.081481, the dog-themed cryptocurrency rallied about 10% before settling at $0.089475 on Friday. The crypto broke through $0.09 for the first time since Nov. 14 in the session before closing below the level.
Doge is seeing renewed buying interest on Saturday and has rallied over 9%.
At the last check, Doge surged to $0.092434 according to Benzinga Pro data.
More importantly, the bullish move has been accompanied by increased volume, giving more authenticity to the strength of the rally. Volume rose to 1.32 billion on Saturday from around 360.33 million on Thursday.
Also Read: Musk Declares “Doge To The Moon” and Meme Crypto Takes Off
What’s coming up: The $0.10 level could serve as psychological resistance for Doge and a break of the level could propel it into the highest price range since early November. The most recent run saw a bullish crossover as the 100-day moving average rose just above the 200-day moving average.
However, the relative strength index has entered neutral territory at 55.
If Doge convincingly breaks above the $0.092 level, which also happens to be a mid-June resistance level, it could reach the next resistance around $0.112. Despite the recent modest bounce, the cryptocurrency is trading well below its all-time high of $0.737567 set in May 2021.
The meme coin may require the support of a few catalysts to drive a sustained upward move. As the stock market has seen, a Fed pause, or at least a slowdown in the pace of rate hikes, could lead to a market-wide increase in risk appetite.
Elon Musk, was a single major influence on Doge when it was at its peak. If the Tesla CEO can talk up the currency, there could be a run. Also, the collapse of cryptocurrency exchange FTX brought back the credibility issue regarding digital currencies. The overhang needs to be raised to add more positivity to the space.
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