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The market capitalization of the first cryptocurrency spiked by $600 million as the coin rallied by around 10% in the last four days following the general recovery of the altcoins market, according to CoinMarketCap.
As the chart of the memecurrency suggests, it has once again reached the major resistance point of the 21-day exponential moving average, which it has failed to break the last three or four times because of a lack of buying volume.
Largest Outflows in 2022 - over 180k $ETH was withdrawn from centralized exchanges within a single day
— IntoTheBlock (@intotheblock) March 18, 2022
-Last time such a magnitude of ETH left exchanges was in Oct 2021, preceding a 15% price increase within ten days
-190k ETH was also deposited into Lido's stETH liquid staking pic.twitter.com/wayu2nvRlR
In the long term, Dogecoin is remaining in a short downtrend movement and losing over 80% of its value from the ATH. But despite the extremely negative performance in the last 300 days, DOGE still has a positive YTD performance with an approximately 100% increase since March 2021.
Recovery conditions
Since its creation, Dogecoin has been a social asset, which relies heavily on the sentiment on the market and the support of the asset from various influencers in the space. In 2021, Elon Musk was the main Dogecoin supporter, whose statements launched the memecoin into space many times.
But as the community around the coin calmed down, Tesla's Dogecoin payment implementation and further support of the first memecoin did not have the same effect, which caused more panic among investors and aggravated the asset's condition on the market.
Alex DovbnyaThe further development of the ecosystem around Dogecoin could affect its position on the market, as the memecoin has no use despite the bargaining chip. Previously, the developer community around the asset announced the further development of the asset and implementation of a new function that may transform the coin's path.
At press time, Doge trades at $0.12 with a 10% price increase in the last five days, while the marketcap of the memecurrency increases by approximately $600 million in the last 24 hours.
Godfrey Benjamin
Alex Dovbnya
Dan Burgin
Vladislav Sopov