Dogecoin (DOGE) Makes Impressive Recovery, Becoming the Fastest-Growing Cryptocurrency Among the Top 10

The popular meme coin surged over 10%, rising from $0.3254 to a high of $0.361

Dogecoin (DOGE) price soared on Friday, making it the fastest-growing cryptocurrency among the top 10 digital assets. The meme coin price surged over 10% to a high of $0.361, ranking seventh on the crypto list by market capitalization.

At the time of writing, the price was up 8.36% at $0.354, showing a minimal 0.4% change over the past day and week, respectively.

Memecoins Outperform in Recovering Market

The broader crypto market showed signs of recovery after a challenging week that saw major tokens like Bitcoin (BTC) and Ethereum (ETH) lose significant value.

Memecoins, on the other hand, outpaced their peers, with Shiba Inu (SHIB) climbing 4.76% to $0.00002145 and Floki (FLOKI) and Pepe (PEPE) both gaining 6%. Pepe's 6% rise propelled it back into the top 30 cryptocurrencies by market cap, currently ranked 25th with an over $7 billion market valuation.

Dogecoin's Resurgence After a Turbulent Week

Dogecoin price dropped to a low of $0.315 in a challenging week that saw it lose 10% of its value. The broader market dip could be attributed to profit-taking and macroeconomic concerns.

However, sentiment has shifted positively for DOGE, fuelled by favorable technical signals and high-profile endorsements. After losing 28% of its market cap since its December high, signs now point to renewed optimism.

Whale Activity Signals Strength in Dogecoin

Dogecoin also saw a significant uptick in whale activity. Large investors bought 470 million DOGE tokens on January 9 and 10, showing confidence in the asset's potential.

Technically, DOGE is trading the 50-moving average, which acts as the nearest price resistance level to the upside. The price is, however, above the 200-moving average. The Relative Strength Index is at 52, indicating that the price can rise further before any change of sentiment.

Earlier in the month, whales reportedly acquired over a billion DOGE in a single day. On derivatives markets, 81% of open interest in Dogecoin futures on Binance remains long, suggesting bullish sentiment among traders.

Elon Musk Provides Indirect Support

Dogecoin's trajectory has been heavily influenced by Tesla (NASDAQ:TSLA) CEO Elon Musk, who provided indirect support with a playful nod on Friday. Musk's recent posts about efficiency, aligning with DOGE-themed references, may have rekindled interest in the cryptocurrency.

With robust whale activity, optimistic technical forecasts, and recovering market sentiment, Dogecoin appears poised for further gains. As the cryptocurrency market navigates its latest rally, DOGE's performance reinforces its reputation as a dynamic asset with strong community backing.