Doge Rockets Higher, Breaching 10 Cent Level First Time Since May: Watch For These Key Levels Next

Zinger Key Points
  • Hopes of Fed dropping its aggressive stance is lifting all risky assets.
  • Doge is also benefiting from the optimism and has gained over 90% over five days.

The Dogecoin DOGE/USD rally has gained momentum, with the dog-themed crypto soaring on Saturday morning.

What Happened: Doge began to turn the corner along with the equity markets at the start of this week. After convincingly breaking above the $0.060 level on Oct. 25, there has been no turning back for the crypto. Since Oct. 24, it has soared over 90%.

At last check, Doge was trading 36.23% higher at $0.113791, according to Benzinga Pro data.

Nevertheless, the crypto is still way off its all-time high of $0.737567 reached on May 8, 2021, when it was being highlighted by Tesla, Inc. TSLA CEO Elon Musk talking about the coin.

Incidentally, Doge peaked before the rest of its peers, including BitcoinBTC/USD, which hit historic highs in early November. Doge ended 2021 at $0.171313 as risk aversion took hold of the market amid worries about the economy and supply chain disruptions that worsened as an offshoot of the COVID-19 pandemic.

The new year did not bring any respite for financial assets, as the Russia-Ukraine war aggravated risk aversion. Doge bottomed at $0.050267 on June 14 and then traded in a $0.058-$0.068 range.

Then on Saturday, the crypto rose above the $0.10 level for the first time since May 11, 2022.

If the Doge rally continues, the crypto could next take aim at a resistance around $0.1224, which proved to be a support level in April and January, earlier this year. Further ahead, the next resistance zone is around the $0.146 area.

Source: Yahoo Finance

See also: How To Buy Dogecoin (DOGE)

Why It’s Important: The specter of aggressive Fed rate hikes was one of the main reasons that exerted downward pressure on most risky bets, including cryptos. With the Fed having increased rates by 75 basis points three times, the word on the Street is that the central bank could either pursue less aggressive rate increases or begin to pivot.

This in turn is expected to fuel economic growth. Last week, the Bureau of Economic Analysis released advance third-quarter GDP data showing better-than-expected growth.

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