Dogecoin (DOGE) Soars 8%, But An Uptick In This Metric Suggests A Pullback
Dogecoin (DOGE) and other altcoins are stealing some of Bitcoin’s shine as the benchmark crypto stalls at its current levels. However, the recent rally could spell trouble for optimistic traders and investors waiting for a continuation of the trend.
As of this writing, Dogecoin (DOGE) trades at $0.08 with sideways movement in the last 24 hours. Over the previous seven days, the meme coin still records an 8% profit. In the crypto top 10, DOGE stands amongst the best performers, surpassed only by Cardano (ADA) and Polygon (MATIC).
DOGE’s price with small profits on the daily chart. Source: DOGEUSDT Tradingview
Dogecoin’s Rally Stirs The Crowds, Is A Retrace Imminent?
Data from Coingecko indicates positive development for meme coins. The sector records around $20 billion in total market cap, a 2% increase in 24 hours, and $1 billion in trading volume over the same period.
In addition to Dogecoin, Shiba Inu (SHIB), Baby Dogecoin, and Bonk have captured the attention of crypto investors. The second of these assets experience a 23% rally in the past week alone, hinting at the increase in risk appetite from digital asset enthusiasts.
The Bitcoin rally deep into the $20,000 territory has flipped the crypto market’s sentiment. As a result, Dogecoin and other meme coins are resurging and outperforming more significant digital assets.
Additional data from analytics firm Santiment registered increased levels of positive interaction across social media platforms. This suggests that users are more willing to take long positions, swelling the liquidity to the downside.
In other words, people are experiencing fear of missing out (FOMO), as recorded by Santiment, increasing the chances of a pullback. Market makers could squeeze long positions before resuming the bullish momentum.
As seen in the chart below, the altcoin sector has recently seen important growth. Tokens such as APTOS and LCX saw around 40% of weekly profits.
Altcoins seeing massive profits in a short span of time. Source: Santiment via Twitter
Altcoins are on another impressive run, with several notable assets up 20% or more. After a 5-day crypto dip, prices are seeing little resistance. Social spikes & FOMO may cause a top, or traders will scoff at this run (allowing rallies to continue).
Comments are closed.