The broader cryptocurrency market has been underperforming over the past 24 hours but Dogecoin has been performing well.

The crypto market has not been having a good start to the week. Over the previous 24 hours, the market has lost less than 1% of its value. And the overall market cap is now over $950 billion.

Dogecoin (DOGE) is one of the few top cryptocurrencies that is having a good day today. The coin is up by more than 9% at the time of writing and its market cap has risen above $6 billion.

There are a few reasons behind Dogecoin’s strong performance today. First, the overall crypto market has been in a bullish mood since the start of the year. This has helped Dogecoin to rise along with other major cryptocurrencies.

Secondly, Dogecoin has been getting a lot of attention from celebrities and influencers lately. This has helped to raise awareness about the coin and attract new investors.

Bitcoin has maintained its price above the $21k resistance level. While Ether is trading above $1,200 despite losing more than 1% of its value in the last 24 hours.

Dogecoin, on the other hand, has surged by more than 9% and is currently trading at $0.062.

Dogecoin was created as a joke in 2013 but has since become one of the most popular cryptocurrencies today. The coin was originally intended to be used as a tipping currency on the internet. But has since become a popular investment asset.

Dogecoin has experienced a surge in price over the last few months as more people have become interested in investing in cryptocurrencies. The coin has also benefited from several high-profile endorsements, including from Tesla CEO Elon Musk.

Currently, DOGE, the native currency of the Dogecoin eco-system, is the best-performing top 10 cryptocurrency by market capitalization.

In just 24 hours, DOGE has appreciated more than 9%, outperforming the rest of the cryptocurrency market in the process.

While there is no immediate cause for DOGE’s sustained rise. The cryptocurrency’s daily trading volume currently stands at $1.1 billion, or approximately 100 percent more than yesterday.

However, here are some remote causes for this rally:

First, Dogecoin’s hashrate, or the computing power dedicated to mining DOGE, has surged to new all-time highs in recent weeks.

This suggests that more people are interested in mining or holding Dogecoin, which could lead to a shortage of cryptocurrency and drive up prices.

Second, Dogecoin’s block reward, or the amount of DOGE. Rewarded to miners for each block mined, is set to halve in less than two weeks.

This could also lead to a shortage of Dogecoin. As miners may be discouraged from mining the cryptocurrency if they are not earning as many rewards.

Critical levels to watch

The DOGE/USD 4-hour chart is presently positive, as Dogecoin has done very well in the last few days. The technical indicators reveal that Dogecoin is doing better than other major cryptocurrencies today.

Data Source: Tradingview

The MACD line shows that there is a lot of bullish momentum in the market. The 14-day relative strength index is high, which means that Dogecoin might be overvalued soon.

There are key levels to watch for Dogecoin. A breakout above $0.070 or $0.075 could see the price go up to $0.085.

If the price goes down, support is found at $0.055 and $0.050. Dogecoin’s recent rise has carried it above the $0.040 mark, which is now serving as a powerful barrier.

By the time of writing, DOGE was trading at $0.0779 per coin. If the rally is sustained, DOGE may climb above the first significant barrier level of $0.0833 before noon GMT today. 

However, DOGE would need the support of the broader market to surpass the $0.090 resistance level.

The bear market has not ended, which implies DOGE may lose some of the gains it had made previously. If that happens, DOGE could fall below the $0.070 in the next few hours.

Avatar
James Atkins

I have been writing copy for blockchain-related projects since 2017. I understand the importance of being able to communicate clearly and effectively with both technical and non-technical audiences. By leveraging my understanding of the crypto industry trends, I can help increase adoption in this rapidly evolving landscape.