Dogecoin makes its comeback to top-10 post 7% recovery

Lavina Daryanani
Source: The Verge

The market crashed during the past weekend and it resulted in most major cryptocurrencies and altcoins registering great losses. Major coins ended up shedding almost a third of their respective values, while the scars were much deeper for mid-cap and small-cap alts. Adding to the losses were meme coins that were raking in profits until the weekend arrived. The massive selling pressure in the market almost wiped out these gains of the holders.

However, as we step into a new week, Monday had a different tale to narrate. The market had put the selling on hold and turned to buy the low-value assets. This was especially true for the meme tokens like Dogelon Mars to Dogecoin, all the prominent names were seen trading in green.

Dogecoin’s thumping comeback

Dogecoin made notable movements over the past few hours. The largest meme-coin created a low of $0.132 yesterday but managed to appreciate by around 7% to register a daily high of around $0.141 today.

Post the said hike, DOGE’s market cap shot up to $18.2 billion. In retrospect, Dogecoin made its way back to the top-10 crypto list, leaving the likes of Polkadot and Avalanche behind. For context, the latter two reflected market capitalization of $17.33 billion and $15 billion at press time.

Crypto rankings, press time price || Source: CoinMarketCap

Before this, DOGE was a part of the top-ten list in early December. Back then, it was displaced by Terra’s LUNA that was comfortably seated at the ninth spot at the time of writing.

Apart from making it to the top-10 cryptos listing, Dogecoin’s market cap dominance has additionally witnessed a sharp spike of late. At the time of press, it had a 2.55% say in the market affairs. Before this, its market-cap dominance was this high only in June last year.

Source: Messari

The drop in Bitcoin’s dominance is usually a blessing in disguise for altcoins, for they get the chance to step up and take charge. As such, the higher the market cap of a crypto, the more dominant it is considered to be in the market.

As far as DOGE is concerned, the selling spree has started cooling down. ITB’s data highlighted that over the past 12-hours, the number of DOGE tokens bought had exceeded the number sold by 12 million. Goes without saying that the same managed to rub off positively on the coin’s market cap.

Additionally, people from the DOGE community continue to have the coin’s back despite setbacks and have been quite vocal about the same on social media.

Interestingly, prominent community leader like Matt Wallace has been trying to get market participants to get into the ‘buying’ mode. The same could likely have a pressing impact going forward too.

Signs of weakness still persist

As highlighted in a recent article, the state of Dogecoin’s fundamentals have been getting polished with every passing day, despite the wobbly price environment. However, the short-term market sentiment wasn’t that pleasing at the time of writing.

The interest of market participants concerning Dogecoin has withered away. Its volume, for instance, has substantially depleted over the past day. The same can be evidenced in the chart attached below.

Source: Messari

Most on-chain metrics collectively depicted a bearish outlook, raising question marks about Dogecoin’s near-term prospects.

Source: IntoTheBlock

As long as the broader market remains indecisive, other coins too would continue to depict similar signs and trends. Only when a clear-cut trend is established by Bitcoin can we expect other coins like DOGE to follow suit.