Crypto recovered on Tuesday morning even as Monday's relief rally spread across traditional markets, with the S&P 500 and the Nasdaq trading higher. The dollar, on the other hand, declined as traders pared back some of their more hawkish Federal Reserve bets.
Major cryptocurrencies rose alongside Bitcoin, with Dogecoin rising about 6% in the last 24 hours. Crypto-linked mining stocks rallied alongside broader equity markets.
DOGE's price rise comes despite a death cross on its three-hour time frame. The 50 MA has fallen below the 200 MA, creating a death cross on the three-hour chart.
The Dogecoin price rallied ahead of the death cross, confusing bears. This is seen with short liquidations far surpassing those of long liquidations. Short liquidations came in at $2.53 million, while long liquidations totaled $938,590.
Across the broader crypto market, crypto positions worth $570 million were liquidated, with shorts liquidated accounting for the majority at $367.05 million, while longs came in at $203.57 million.
On Tuesday morning, traders will watch out for data on the U.S. manufacturing Purchasing Managers' Index.
At the time of writing, Dogecoin was up 4.76% in the last 24 hours to $0.094 and down 6.22% in the last 24 hours.
Despite the increase in prices on a daily basis, major cryptocurrencies remain lower over the past week.
Dogecoin is currently attempting a breakout above the daily MA 50 at $0.096. If this is achieved, Dogecoin may rally to $0.12, where the bears might mount pressure. If the DOGE price turns down sharply from here, its sideways trading might continue between $0.09 and $0.12.
On the other hand, a break and close above the $0.12 resistance might suggest that the bulls are back in the driver’s seat. That clears the path for a rise to the $0.16 level, which is expected to behave as resistance.