Dogecoin Surprises Crypto Investors: Crypto Market Review, November 30
The price performance of the Meme coin is somewhat unusual, and here is the reason why
- The surprising growth of Dogeoin
- Ether Breakthrough
The long-awaited recovery of the cryptocurrency market is finally here although it is purely speculative and most likely short term. Some positivity could be a sign of a potentially stronger recovery going forward.
The surprising growth of Dogeoin
Rumors are a powerful fuel, especially for the cryptocurrency market and related projects. Thanks to rumors, DOGE was able to bring triple digit returns to its early investors. In this case, rumors and assumptions about Twitter’s implementation of Dogecoin have returned to the minds of retail investors, and the result is another price spike in the market’s biggest memecoin.
Typically, DOGE market cycles have consisted of an explosive, short-term pump, a quick 10-20% reversal, and a gradual drop to pre-pumping levels. However, the coin meme has deviated from the aforementioned market growth pattern and the most recent price performance in the market has proven it.
Over the past eight days, DOGE has gained 40% of its value while losing more than 50% of its value from the local high reached in early November. Such behavior in the market is very unusual, which is why any prediction becomes extremely complicated.
In the next few days, a bullish cross between the 50- and 200-day moving averages is expected. The signal could become a catalyst for the acceleration of the rally. However, the main problem with DOGE is a high percentage of speculative traders who rely on the aforementioned rumors and fake news.
In addition to Bitcoin’s spike at $17,000, Ethereum did not lag behind digital gold and attempted to approach the $1,300 price threshold. Unfortunately, the initial momentum was not enough to reach the important price level, and Ether fell back to $1,250.
However, the breakout above the 21-day moving average is the first sign of an upcoming reversal that ETH desperately needs. Due to the lack of network activity, the price of Ether has been falling for almost a month now.
Recently, U.Today covered how Ethereum’s burning mechanism barely provides a burnt volume. Despite becoming a deflationary asset in early November, Ether’s net issuance returned to surplus after network transaction activity hit a multi-month low.
With the lack of network usage, Ethereum will most likely remain inflationary despite the change in the consensus mechanism and a significant drop in issuance. However, historical data suggests that low activity on the network is temporary and that the deflationary mechanism will start working again even without the help of throughput-intensive applications.
At press time, Ethereum is trading at the $1,267 price level and is trying to reach the important psychological resistance level at $1,300. The successful breakout would make possible a run towards the 50-day moving average, which is the first barrier before a recovery run.
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