Given the memecoin’s difficulties in advancing into upper resistance levels, Dogecoin’s recent 8% rise was one of the most unexpected price performances on the market. The breakout over the immediate resistance level, on the other hand, could bring us some nice surprises.
The breakout over the 50-day moving average is significant for the market, as memecoin rallies typically herald an incoming inflow season to the market in general, as retail traders and investors seek rapid returns using volatile assets like Dogecoin and Shiba Inu.
When we compare the historical performance of those assets to more fundamental cryptocurrencies such as Bitcoin or Ethereum, we see that inflows to the latter arrive with a minor delay compared to memecoins and tokens for the reasons stated above.
As of now, we are seeing a similar trend when high caps “trail behind” as compared to Dogecoin or even Shiba Inu, both of which have seen significant gains in the last two or three days.
The trade volume and market flow indicate that both Ethereum and Bitcoin are experiencing some reprieve following the recent huge sell-off. Despite the weekend trading session’s modest trading volume, the bullish market change could return us to the recovery track that the digital asset market lost a few weeks ago.
To remain in the ascending price range, Dogecoin would need to obtain a foothold above the 50-day moving average, which would be a difficult feat given the current dearth of inflows to the memecoin.
Dogecoin is currently trading at $0.065 and has gained almost 7% in value in the previous 24 hours.