Dogecoin rises 8%, nears $0.12: Good news for the next altcoin season?

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    DOGE surged 8% in three days after Bitcoin’s rebound.
    Is this just a temporary blip or a precursor to a significant altcoin breakout?

As a researcher who has been closely following the crypto markets for several years now, I must admit that I am intrigued by the recent surge of Dogecoin (DOGE) following Bitcoin’s (BTC) rebound. With my extensive experience in analyzing market trends and patterns, I can’t help but wonder if this is just a temporary blip or a precursor to a significant altcoin breakout.

Over the past few weeks, Dogecoin (DOGE) has experienced a decrease in value, largely due to Bitcoin’s (BTC) bearish trend that started in September. As a result, it hasn’t been able to reach the $0.12 mark as resistance. Currently, each Dogecoin is being traded at approximately $0.103.

On the contrary, despite the volatility this month, Dogecoin shows promise: It’s seen a strong surge, climbing up by approximately 8% since its closing price yesterday as we move into the second week.

Given that Bitcoin long positions are regaining control once more, this trend could indicate a period of altcoins rising in value, and Dogecoin (DOGE) might take the front line in this scenario – a notion definitely worthy of investigation.

The altcoin index showed a clear trend

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If three-quarters (75%) of the top 50 cryptocurrencies have outperformed Bitcoin within the past 90 days, this suggests a period where alternative coins (altcoins) are showing strong performance, often referred to as an “altcoin season.

Over the preceding three-month span, merely 15% of the 61 altcoins I was studying managed to exceed Bitcoin’s performance. Interestingly, within the last 30 days, that number significantly increased to 72%, indicating a notable shift in the market dynamics.

Indeed, during this year-to-date period, it’s been the meme tokens that have taken the front seat, with a total of 42 tokens showing better performance than Bitcoin. This trend supports the early predictions made by AMBCrypto.

If this upward trajectory continues, there’s a strong possibility we might witness a surge in altcoins, often referred to as an “altcoin season.” Interestingly, Dogecoin (DOGE) has experienced a substantial growth spurt over the past 72 hours, which could potentially spark a major price increase, possibly leading to a market breakout.

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Source : Coinglass

Although an influential expert stirred optimism about this concept, the graph above painted a noticeably different picture.

Contrary to the surge in May around the middle that took Dogecoin close to the $0.17 mark due to heavy trading activity in both the spot and futures markets, the trading volume has been relatively low lately.

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The current market behavior seems to be causing apprehension among traders, given that Bitcoin’s recent drop has caused its value to approach almost $51K.

Could it be that Dogecoin’s movements are reflecting those of Bitcoin, possibly indicating a warning before a change in direction for its price?

DOGE might have experienced a momentary ascend

Interestingly, even though Dogecoin’s daily price chart shows three successive green candles, the largest positive net flow occurred on the 9th of September, indicating a substantial increase in investments.

Source : IntoTheBlock

This could suggest a day trading strategy of aggressive profit-taking before momentum shifts.

Simply put, memecoins are significantly more unpredictable than other digital currencies called altcoins. So, it’s not too much to think of the recent surge as a popular movement fueling Dogecoin’s rise, which follows Bitcoin’s pattern of movement.

Moreover, the absence of strong buying evidence amplifies doubts about the trend’s sustainability.

As a researcher studying cryptocurrency trends, I’m observing that bulls are taking advantage of Bitcoin surpassing the $57K mark. According to AMBCrypto’s analysis, this upward trend might be temporary, leading Dogecoin (DOGE) to slide back below its $0.10 support level.

Consequently, DOGE might not lead the next altcoin season.

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2024-09-11 03:04