Arman Shirinyan
Memecoin is on the way to a great comeback if the configuration is not invalidated
Contents
- Dogecoin is still alive
- Ethereum aims for the sky
The cryptocurrency market has suddenly rallied in the past couple of days as most digital assets are posting double-digit gains, and meme coins like Dogecoin are making huge inroads.
Dogecoin is still alive
Considering the poor performance of the cryptocurrency market in general, it is no wonder that DOGE followed the same path. Additionally, memetokens and coins present even more risk to investors, which is why the lack of volatility and overall trading activity on Dogecoin is unsurprising.
However, in the last 24 hours, DOGE has shown outstanding performance and broke out of the consolidation range it has been in for 125 days. This move could become the basis for the next recovery rally for Dogecoin.
April 2021 was the last time the dog-themed cryptocurrency showed its investors some positivity. After rallying and hitting the current ATH, Dogecoin entered the extended downtrend that continues until now.
According to the fading movement on the chart, we might finally see some sort of change in Doge’s behavior. However, the current state of the market shows that it is too early to start moving funds into higher-risk assets, given the lack of clarity on what steps financial regulators might take in the future.
Ethereum aims for the sky
In the past 48 hours, Ether surprised the majority of cryptocurrency investors with its explosive run to $1,500. The main reason for such an unexpected price surge was mainly related to the short market pressure.
According to market trackers, the funding rate of the world’s second largest cryptocurrency quickly reached negative values after the first wave of buying power on October 25. Some bears decided to take a chance and sell the market, which might have been a logical move considering its price performance in September when ETH got rejected on the 50-day moving average.
Fortunately, the existing short pressure was not enough to drive Ethereum lower and instead the bulls were able to provide enough backing for the second-largest asset in the market to cause a slight short pressure.
The next target for the second largest cryptocurrency in the market would be the 200-day moving average around the $1,800 price threshold. However, it is too early to tell if the bulls will be able to push Ether that high without the proper backing from institutional investors.
Ether has been denied the 50-day moving average at least three times in the last five months, which shows why so many traders decided to suddenly sell ETH as soon as it hit the aforementioned resistance level.