Yerevan (CoinChapter.com) – Elon Musk did not come to save Dogecoin. The meme cryptocurrency had to find its bulldog buddies by itself.
The DOGE/USD exchange rate underwent a blasting four-day upside run wherein it rose by more than 90%, just as its rival cryptocurrency tokens surged from their sessional lows in tandem. Dogecoin prices rocketed to $0.288 on Friday, albeit a strong profit-taking sentiment noted across the Asia-Pacific and early European session corrected them lower to $0.258.
DOGE daily chart
Dogecoin hinted at bottoming out at $0.16 on Monday following a downside move that wiped out more than 79% of its market cap. The cryptocurrency rebounded strongly on the market-wide “buy-the-dip” sentiment, but its upside moves continued to face resistance from the purple range in the chart below (around $0.29-0.325).
The range also appeared closer to the Dogecoin’s 50-day moving average (MA-50). The blue wave was instrumental in capping DOGE/USDT upside attempts during the May 19 market crash. Therefore, bulls might want t to reclaim MA-50 as support to confirm their presence.
Also read: Dogecoin demonstrating strong declines, weaker recovery tips bearish action ahead
What drives Dogecoin?
Dogecoin is infamously volatile. It’s actively promoted on Twitter and other social media platforms. But the biggest proponent to date has been Elon Musk, the CEO of Tesla and SpaceX. The billionaire has been responsible for several DOGE rallies in the recent past. The token soared by 41 percent in the session preceding Elon Musk’s appearance on the SNL show on May 8. Mr. Musk actively tweeted about the coin, hinting at positive developments ahead.
A similar uptrend graced the DOGE daily charts on May 24, when the billionaire urged the Dogecoin community to brainstorm over possible improvements to the blockchain. As a result, the meme-coin gained 20 percent.
However, the picture with the recent June 21 crash looks a bit different. On Tuesday, the CEO’s initial green candle might have been prompted when he replied to a tweet from one of the Dogecoin developers.
But the reply above was hardly enough to cause a 52.5 percent rally over several consecutive sessions.
Also read: Dogecoin couldn’t dodge the bearish bullet—24% value wiped in 24 hours
Crypto market in recovery
It is possible that Dogecoin caught the recovery fever. After all, there are impressive gains across the rest of the altcoins and Bitcoin as well.
After bottoming out at $28,600 on Tuesday, the alpha crypto hit $35,517 early in the Friday session before correcting down to $34,297 as of the moment (19.9 percent gain). Dogecoin’s daily chart took the same approach as Ethereum (ETH), the second-largest crypto market. ETH/USD exchange rate stood at $1,928 in the Friday session, after a 13 percent bullish advance from the $1,700 on Monday (lowest since March 2021).
The recovery pattern is similar among other altcoins as well. For example, Cardano’s ADA dove down to $0.99 in the Monday session, then rallied 40 percent up to $1.39, before correcting down to $1.33 in the London session Friday.
Also read: 3 reasons why Bitcoin price could reclaim $40,000
Since the Dogecoin recovery followed a pattern set by larger cryptos, the outcome of this rally would possibly be determined by the rest of the market. Should Bitcoin gains continue, Dogecoin is likely to follow suit. If Bitcoin declines once more, DOGE could fall as one of the casualties. As of the moment the Shiba-Inu-inspired meme-coin traded at $0.257.
