According to CoinMarketCap, the first cryptocurrency’s market value increased by $600 million as the coin rose by roughly 10% in the last four days following the general recovery of the altcoins market.
The memecurrency has once again approached the significant resistance mark of the 21-day exponential moving average, which it has failed to break the last three or four times due to a lack of buying volume, as shown on the chart.
In the long run, Dogecoin is still in a short slump, having lost nearly 80% of its value from the all-time high. Despite the exceedingly poor performance in the last 300 days, DOGE has a good YTD performance, with a growth of about 100% since March 2021.
Conditions for recovery
Dogecoin has been a social asset since its inception, relying primarily on market sentiment and the asset’s endorsement from various figures in the industry. Elon Musk was the most vocal backer of Dogecoin in 2021, and his words propelled the memecoin into space several times.
However, when the coin’s community calmed down, Tesla’s Dogecoin payment implementation and continued backing of the initial memecoin did not have the same effect, causing more investor concern and exacerbating the asset’s market state.
The evolution of the ecosystem around Dogecoin could have an impact on its market position, as the memecoin is useless as a negotiating chip. Previously, the asset’s developer community announced that the asset will be further developed and that a new function would be implemented that might change the coin’s trajectory.
Doge is currently trading at $0.12, up 10% in the last five days, while the memecurrency’s market cap has increased by about $600 million in the last 24 hours.