Memecoin’s surprising price increase puts it at top of market in terms of profitability
Dogecoin’s most recent 8% rally was one of the most unexpected price performances on the market considering Memecoin’s move towards upper resistance levels. However, a breakout above the local resistance may give us some pleasant surprises.
The breakthrough above the 50-day moving average is an important sign for the market, since memecoin rallies usually herald an upcoming inflow season to the market in general as retail traders and investors seek quick profits with the help of volatile assets like Dogecoin and Shiba Inu.
If we compare the historical performance of those assets with more fundamental cryptocurrencies like bitcoin or ethereum, there is a slight delay in the subsequent flows compared to memecoin and tokens due to the above reasons.
As for now, we are seeing a similar tendency when large caps “lag behind” compared to Dogecoin or even Shiba Inu, which is also showing a prominent gain in the last two or three days.
Trading volume and market flow suggest that both Ethereum and Bitcoin are taking some respite after the recent heavy selloff. Despite the weekend trading session, which usually has relatively low trading volume, a positive change in the market could put us back on the recovery track that the digital asset market lost a few weeks ago.
In order to stay in the ascending price range, Dogecoin would need to gain a foothold above the 50-day moving average, which is a complicated task considering the lack of inflows to the memecoin we are seeing today.
At press time, Dogecoin is trading at $0.065 over the past 24 hours and has gained almost 7% in value.
