Dogecoin price has staged a slow recovery in the past few days as cryptocurrencies rebounded. The coin jumped to a high of $0.1110 on Monday, which was the highest level since November 8. It has risen by more than 40% from the lowest level this year, giving it a market cap of over $13 billion.
Dogecoin hashrate spikes
Dogecoin and other cryptocurrencies have risen slightly in the past few days as investors buy the dip in the currency. This rebound is in line with the performance of other cryptocurrencies like Bitcoin, Ethereum, and Litecoin.
A closer look at on-chain data shows that Dogecoin’s hashrate has been in a strong upward trend in the past few days. According to CoinWarz, Dogecoin has a hashrate of 632 TH/s, which is slightly lower than its all-time high of 689 TH/s. It has risen from the year-to-date low of 342.
Hashrate is an important data in the crypto industry because it shows the health of a blockchain. It measures the computational power of a blockchain by determining the number of guesses made per second.
Additional data shows that mining difficulty has also surged in the past few weeks. It currently stands at 11.60 million, which is the highest level ever recorded. It started the year at 5.1 million.
Hashrate and mining difficulty tends to be separated from a coin’s price. For example, the two have been in a strong upward trend this year even as Dogecoin price has tumbled by over 60%.
Dogecoin price has risen slightly because of the recent positive news about Twitter from Elon Musk. In a tweet, he said that several large advertisers like Apple and Amazon have resumed advertising on the platform. Musk also reiterated his support for Dogecoin.
A potential risk for Dogecoin is the Federal Reserve. According to the WSJ, the Fed has penciled that it will hike interest rates above the psychological level of 5%.
Dogecoin price forecast
The daily chart shows that DOGE price has been in a slow bullish trend in the past few weeks. Along the way, it has formed a popular bullish pattern known as golden cross. This pattern forms when the 200-day and 50-day moving averages make a crossover, as we wrote here.
The Relative Strength Index (RSI) has moved above the neutral point at 50. Therefore, the coin will likely continue rising in the near term as sellers target the key support at $0.13. A drop below the support at $0.090 will invalidate the bullish view.