The entire cryptocurrency market was jolted on the 24th of February after news of Russia’s military offensive in Ukraine started flying, with even stocks spiraling down for some hours.
However, the invasion may have impacted the market for some time, but the financial and digital currencies experienced a slight rebound after the initial market scare.
The market rebound has seen Dogecoin gain a substantial part of its value back, just like with other cryptocurrencies.
The general market trend has seen a rebound after the initial correction from the shock news of Russia’s invasion of Ukraine, with Dogecoin appreciating by more than 20% after the previous day’s losses.
According to the data presented by TradingView, Dogecoin bounced back from the slump after the previous day’s loss, and because of the swift recovery, the value of DOGE pushed up further on the daily price chart.
Dogecoin/Tether US Price Chart. Source: TradingView
Assets Oversold In A Short-term Period
Analysts believe that the most explainable reason for the recent bounce is intense selling pressure, and traders are overwhelmed by the initial panic that occurs due to the conflict in Eastern Europe.
Before the global economic pressures, the occasional upward bound was the underlying mode of activity for the crypto industry and the rest. But, most of the time, the direction of market corrections depends on the global financial markets, especially stock markets.
The volume profile of the chart, as shown above, indicates that DOGE was the token with the largest inflows since the beginning of the year, even before the escalation of conflicts between Russia and Ukraine. This partly explains why the price of Dogecoin is slightly higher than others.
The RSI indicator shows how the DOGE was oversold on the 24th, but thanks in no small part to the rebound, the relative strength index mark is back to its normal level. RSI indicators often show how an asset’s movement is controlled by reaching a specific curve corresponding to the token’s market performance.
TradingView also points to the other indicators by showing how Dogecoin succeeded in pushing past the short-term moving average, which might pave the way for a potential upturn in value for the asset if buyers with decent purchasing power appear. Should investors with the means to purchase the tokens appear and trade with the sellers, the market performance of Dogecoin will rebound for the long term.
What Do The Indicators Say?
The short-term time frame only indicates a predicted rebound, but the daily and weekly time frames failed to show an encouraging result. This means an imminent downward trend on the horizon for Dogecoin if nothing changes.
Notwithstanding, the performance of the DOGE has been encouraging enough that even the market correction can make the largest cryptocurrency static in just a matter of minutes.
The overall performance is undoubtedly a positive market move not just for the meme cryptocurrency alone but for other digital currencies in the market as a whole.