The FTX implosion continues to wreak havoc in the crypto market leaving most market participants worried about the safety of their investments. When a crypto company of such magnitude as FTX, which was the second largest crypto exchange just a few weeks ago, goes bankrupt, it goes without saying that the accompanying crypto contagion is felt across the board. However, Dogecoin investors seem to be recovering from the FTX collapse losses with Doge price recording more than 12% gains in the past 24 hours.
The meme coin is witnessing a significant spike in buyers’ strength on Saturday. Dogecoin has displayed a clear breakout above a key barrier, implying that the recovery may be sustained in the short term.
Dogecoin Price Readies For 23% Gains To $0.113
Dogecoin (DOGE) was hovering around $0.0919 at the time of writing after pumping 18% over the last two days to reach a high of $0.095 on Saturday. Most top-cap cryptocurrencies are trading in green with the total crypto market capitalization up 1.44% on the day to stand at $840.18 billion.
With the recent price surge, DOGE is trading well above the 50-day simple moving average (SMA). Overall, the price sits comfortably above all the major moving averages, from $0.07252 where the 100 and 200 SMAs appear to merge, and the 50 SMA which currently sits at $0.083.
If DOGE sustains above these key support areas, it will suggest an increase in buying pressure that could very well start a strong move upward.
Buyers will now attempt to push the price past the $0.1 psychological level to confront intermediate resistance from the $0.113 level. Note that this level served as a support zone between October 30 and November 6.
As such, investors could place their long bets on the Dogecoin price rally to this supply level. Such a move would constitute 23% gains from the current level.
Dogecoin’s upward outlook is supported by the rising Relative Strength Index (RSI), suggesting that the bulls are stronger than the bears. The price strength at 55 is an indication that the bullish momentum is back and is likely to be sustained in the short term.
DOGE/USD Daily Chart
On the downside, a daily candlestick close below the $0.09 psychological level will invalidate the bullish thesis. Such a move would signal a lack of strength amongst the buyers and would trigger another sell-off as holders move to offload their DOGE.
In such a scenario, the Dogecoin price could drop toward the $0.083 demand zone, embraced by the 50-day SMA. Market participants could expect DOGE to take a breather here before staging a comeback.
Alternatives To DOGE With Promising Returns
While Dogecoin looks promising with the price expected to continue rising over the weekend, there is no determining with certainty that the bullish momentum will be sustained. As such, it is always better to invest in assets that are on presale as the chances of multiplying your investments once they are listed on exchanges are high. Here are some of the most popular cryptocurrencies currently on presale