According to CoinMarketCap, the market cap of the first cryptocurrency has skyrocketed to $600 million as Dogecoin price is up around 10% in the past four days following the overall crypto market rally.
“Largest Outflows in 2022 – over 180k $ETH was withdrawn from centralized exchanges within a single day. 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”,
IntoTheBlock reported.
As the graph of meme coin shows, it has once again reached key resistance of the 21-day exponential moving average, which it has failed to break three or four times most recently because of a lack of buying volume.
In the long term, Dogecoin is still in a short-term downtrend and has lost more than 80% of its value against ATH. But despite the highly negative operating results over the past 300 days, DOGE still has a solid start to the year with an approximate 100% increase since March 2021.
Since its creation, Dogecoin has been a social asset, heavily dependent on sentiment in the market and the support of the asset from various influencers in the space. In 2021, Elon Musk was a major Dogecoin backer who claims to have launched the memecoin into space multiple times.
But when the community surrounding the coin calmed down, Tesla’s Dogecoin payment implementation and additional support for the first memecoin didn’t have the same effect, which further spooked investors and depressed add importance to the condition of the property on the market.
Further development of the ecosystem around Dogecoin could affect its position in the market, as the memecoin is not used despite the bargaining chip. Previously, the developer community around the asset announced the development of more assets and the implementation of a new function that could change the path of the coin.
DOGE/USD 4-hour chart | Source: TradingView
At press time, DOGE is trading at $0.12 with a 10% price increase over the past five days, while the market capitalization of the meme coin has been up around $600 million in the past 24 hours.