- 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
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.
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.
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