April 25, 2024

Can Dogecoin Hold Out After Weekend Rally Put It 10% Ahead of the Game?

Dogecoin had a much-expected rally over the course of the past weekend as it pushed its price through the downward trajectory it had been on for a while. Low volatility usually marked weekend markets and they often create this kind of rallies that eventually help lucky cryptocurrencies come out of which shell they had been in. this time around, it was the turn of the meme coin to have this experience as it rose above $0.12 again after a while.

Dogecoin Adds $600 Million in Market Capitalization

The rally that occurred over the course of the weekend witnessed Dogecoin adding an additional $600 million in market capitalization. The coin lost a huge part of its market capitalization after it got to its all-time height sometime last year but a subsequent 10% rally had the dog-themed coin regaining a substantial part of it. The coin sold for at the $0.11 realm for the most part of last week but it stayed consistently there long enough that it was able to push through to the $0.12 level.

During its time in the trenches, Dogecoin saw up to 70% of its value scrapped off unceremoniously. Albeit, there was still a considerable measure of returns for those who had invested in it early enough. According to available year-to-date data, the coin keeps maintaining some relatively good gains for its investors as it records almost a hundred percent increment since March 2021. The quality of performance witnessed is a sign of good tidings for Dogecoin as it had got a breakpoint early in 2021.

As it is, most Dogecoin holders are still within the profit range. According to reports from IntoTheBlock, it reveals that up to 55% of all Dogecoin holders are confirmed to be within profit. Holders who have had their coin for not less than one year are still winners in the race and with the latest increase, they are experiencing another round of profitability.

Can It Really Hold for Long?

When the rally over the weekend sent Dogecoin over $0.12, the meme coin has encountered a number of stiff resistance from bearish traders. The strongest of this resistance is at the $0.13 zone where the coin was expected to have gained more momentum to be able to break out of this zone. On the other side, Dogecoin has been forging some strong support. This is at $0.1141 which proves to be the most prominent as it had demonstrated in the past week. 

Getting to this level has put Dogecoin on a bullish path. It now begins level with the 50-day simple moving average which means more willingness from investors to buy the coin at higher rates even though it is still a market for sellers right now.

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