Dogecoin (DOGE) is green across almost all time frames today. According to CoinGecko data, DOGE’s price has risen 3.3% in the last 24 hours, 10.3% in the last week, 9.2% in the 14-day charts, and 15.4% over the previous month. Dogecoin (DOGE) hit the $0.11 mark on April 29, but has since fallen to the 10-cent price level. DOGE is currently the second-best performing cryptocurrency in the daily charts among the top 100 projects by market cap. Let’s discuss what may be pushing Dogecoin’s (DOGE) latest gains.
Dogecoin’s (DOGE) recent price gains are surprising, given the larger market correction. Bitcoin’s (BTC) price climbed to the $79,000 mark, but has since fallen to the $75,000 price level. DOGE and BTC have often moved in tandem. Moreover, the Federal Reserve has decided to keep interest rates unchanged after its recent FOMC (Federal Open Market Committee) meeting. Higher rates often lead to price corrections for risky assets as borrowing is difficult.
Despite bearish forces, Dogecoin (DOGE) seems to be maintaining some healthy gains. CoinGlass data also shows that open interest (OI) for DOGE has also increased steadily since March of this year. Investors may be feeling confident about the memecoin.
Limitations On DOGE
Given the larger bearish market environment, there is a high chance that Dogecoin (DOGE) will face a price correction soon. Moreover, higher rates may lead to investors taking a prolonged risk-off approach.
Also Read: 2 Things That Could Push Dogecoin To $1 Within 1 Year
Macroeconomic worries are another factor to consider. Macro uncertainties have led to an exodus of investors from the crypto space. Riskier assets, such as Dogecoin (DOGE) and other memecoins, often face the brunt of the matter. Although DOGE’s recent price gains have been commendable, it is unclear if the coin can sustain its upswing.
Credit: Source link
