Risk appetite has perked up in the financial markets amid hopes of a Fed pivot. Cryptocurrencies, however, have been lagging, with the exception of a few coins. Dogecoin (CRYPTO: DOGE) was an outperformer among the top cryptocurrencies this week.
What Happened: Doge started Monday’s session around $0.077 and remained largely bound under the $0.082 level until Thursday. After closing Thursday’s session at $0.081481, the dog-theme crypto rallied around 10% before settling at $0.089475 on Friday. The crypto breached $0.09 for the first time since Nov. 14 in the session before closing below the level.
On Saturday, Doge is seeing renewed buying interest and has rallied over 9%.
At last check, Doge was advancing to $0.092434, according to Benzinga Pro data.
More importantly, the upside has been accompanied by increased volume, which gives more authenticity to the strength of the rally. Volume increased to 1.32 billion on Saturday from around 360.33 million on Thursday.
What’s Lies Ahead: The $0.10 level may serve as a psychological resistance for Doge, and breaching the level could take it to its highest price range since early November. With the recent run, a bullish crossover occurred, as the 100-day moving average rose just above the 200-day moving average.
The relative strength index at 55, however, has reached a neutral zone.
If Doge convincingly breaks above the $0.092 level, which also happens to be a resistance level from mid-June, it could take a shot at the next resistance around $0.112. Despite the recent modest bounce, the crypto is trading well below its all-time high of $0.737567 reached in May 2021.
The meme coin may require the backing of a few catalysts to drive a sustainable upside. As has been seen in the case of the equity market, 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 broke to its all-time peak. If the Tesla CEO can talk up the currency, it could see a run. Also, the collapse of cryptocurrency exchange FTX brought back the credibility question concerning digital currencies. The overhang needs to lift to infuse more positivity into the space.
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