Memecoin is on path to big comeback if setup is not invalidated
The cryptocurrency market has suddenly recovered in the last two days as most digital assets are showing double-digit gains, and memecoins like Dogecoin are making a huge breakthrough.
Dogecoin is still alive
Considering the poor performance of the cryptocurrency market in general, it is no wonder that DOGE has been following the same path. Additionally, memetokens and coins provide even more risks to investors, which is why the lack of volatility and overall trading activity on Dogecoin is not surprising.
However, in the last 24 hours, DOGE has been showing exceptional performance and breaking out of the consolidation range it has been in for the last 125 days. The move could become the foundation for the upcoming recovery rally for Dogecoin.
Unfortunately, investors should remain cautious considering the holder compositions of the memecoin. The majority of DOGE holders are retail investors who are willing to take profits or break even as soon as possible, which is why local rallies without the support of whale or institutional investors take DOGE and similar assets nowhere.
April 2021 was the last time the dog-themed cryptocurrency showed its investors some positivity. After rallying and reaching the current ATH, Dogecoin entered the prolonged downtrend that continues until now.
According to the fading movement on the chart, we might finally see some kind of change in Doge’s behavior. However, the current state of the market shows that it is too early to start moving funds toward high-risk assets, considering the lack of clarity in steps that financial regulators may make in the future.
Ethereum is aiming at the sky
In the last 48 hours, Ether surprised the majority of cryptocurrency investors with its explosive run to $1,500. The main reason behind such an unexpected price spike was mostly tied to the short squeeze on the market.
According to market trackers, the funding rate on the second biggest cryptocurrency in the world swiftly hit negative values after the first wave of buying power was seen on Oct. 25. Some bears decided to take their chances and short the market, which could have been a logical decision considering its price performance back in September when ETH was rejected on the 50-day moving average.
Luckily, the existing short pressure was not enough to push Ethereum down and, instead, bulls were able to provide enough support for the second biggest assets on the market to cause a mild short squeeze.
The next target for the second biggest cryptocurrency on the market would be the 200-day moving average located at around the $1,800 price threshold. However, it is too early to tell if bulls will be able to push Ether that high without the proper support of institutional investors.
Ether has been denied at the 50-day moving average at least three times in the last five months, which shows why so many traders decided to suddenly short ETH as soon as it reached the aforementioned resistance level.