Tuesday, October 3, 2023
Homebtc newsDogecoin Rally Ahead? This Positive Correlation Data Points To A Potential 20%...

Dogecoin Rally Ahead? This Positive Correlation Data Points To A Potential 20% Jump For DOGE

Dogecoin has been one of the cryptocurrencies to watch in the past few weeks. However, the token’s price appears to be slowing down after recording significant bullish momentum.

Interestingly, there might be renewed optimism around the DOGE price, as a crypto analyst has offered insight on what to expect from the meme coin in the coming weeks.

Dogecoin To Experience A 20% Price Rally?  

On Thursday, August 10, crypto analyst Ali Martinez shared data from IntoTheBlock, suggesting that DOGE might witness a positive price movement soon. This suggestion is based on the similarities in the price history of both Shiba Inu (SHIB) and Dogecoin. 

According to his post on X (formerly Twitter), there is a “strong” positive correlation of 0.74 between the two meme coins over the past two months. This indicates that when SHIB’s price shifts, the price of DOGE often moves in the same direction. 

Dogecoin

Source: TradingView/ali_charts

Interestingly, this hasn’t happened in the past few days, as the DOGE price has not taken significant action. The value of SHIB, on the other hand, has surged by 22% in the last seven days.

However, Ali Martinez noted that “given their high correlation coefficient,” a bullish price movement might still be on the horizon for DOGE. So, investors might want to keep a keen eye on the token’s performance in the coming days.

DOGE Price Stuck In A Range – Price Overview

Dogecoin has struggled to maintain the momentum garnered from Elon Musk’s support a few weeks ago. The meme coin has been trading mainly within a range since then, recording a mere 3.1% gain in the past week.

After reaching a 7-day high of $0.07658 on Saturday, August 5, the DOGE price shed all its gain to trade below $0.073. However, the token’s price is back up, hovering around its weekly high.

This price action underscores the meme coin’s unsuccessful attempts at breaking the $0.08 resistance level. DOGE trades about 5.5% down from the significant $0.08 zone after failing to breach it on July 31.

As of this writing, the Dogecoin price is $0.075739,  having leaped by 0.3% in the last 24 hours. With a nearly $10.7 billion market cap, DOGE ranks as the 8th-largest cryptocurrency.

CoinGecko data reveals that there has been a substantial boost in DOGE’s market activity, with a 17.6% increase in its daily trading volume. The cryptocurrency currently has a 24-hour trading volume of over $430.2 million.

Dogecoin

DOGEUSDT approaching the $0.08 level on the daily timeframe | Source: DOGEUSDT chart from Tradingview
Featured image from iStock, charts from TradingView

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

LAST NEWS

Featured NEWS