DOGE surged 8% in three days after Bitcoin’s rebound.
Is this just a temporary blip or a precursor to a significant altcoin breakout?
Dogecoin [DOGE] has trended downwards following Bitcoin’s [BTC] bearish onset in September, preventing it from testing the $0.12 ceiling. At press time, DOGE was priced at $0.103.
However, there is a silver lining: Dogecoin has begun a bullish push as it enters the second week of this volatile month, with an impressive 8% increase from the previous day’s close.
Therefore, with Bitcoin longs re-establishing their dominance, the potential for an altcoin season could suggest that DOGE might lead the charge – an idea worth exploring.
The altcoin index showed a clear trend
When 75% of the top 50 coins outperform Bitcoin over the last 90 days, it indicates an altcoin season.
The data revealed that over the past three months, only 15% of 61 altcoins outperformed Bitcoin. However, in the past 30 days, this figure jumped to 72%.
In fact, in the YTD cycle, meme tokens led the way, with 42 tokens outperforming Bitcoin, reinforcing AMBCrypto’s initial speculation.
If the trend persists, an altcoin season could be imminent. Notably, DOGE has seen a significant uptrend in the past 72 hours – could it trigger the breakout?
While a prominent analyst fueled optimism around this idea, the chart above presented a stark contrast.
Unlike the mid-May rally that pushed DOGE near the $0.17 range, driven by high trading volume in both spot and perpetual markets, volume has since underperformed.
This suggests fear among traders, as the market continues to absorb Bitcoin’s recent dip, which brought its price down to nearly $51K.
Does this suggest Dogecoin is mirroring Bitcoin’s market moves, signaling caution before a price reversal?
DOGE might have experienced a momentary ascend
Surprisingly, despite three consecutive green candles on Dogecoin’s daily price chart, the positive net flow peaked on the 9th of September, signaling significant inflows.
This could suggest a day trading strategy of aggressive profit-taking before momentum shifts.
That being said, memecoins are tenfold more volatile than altcoins. Therefore, it wouldn’t be an exaggeration to view this upward trend as a socially driven push to propel DOGE bullishly, mirroring BTC’s movements.
Moreover, the absence of strong buying evidence amplifies doubts about the trend’s sustainability.
Put simply, bulls are capitalizing on Bitcoin’s rise past $57K. AMBCrypto predicts the trend to be short-lived, potentially causing DOGE to fall back below the $0.10 support.
Consequently, DOGE might not lead the next altcoin season.
⚠️Disclaimer
This content aims to enrich readers with information. Always conduct independent research and use discretionary funds before investing. All buying, selling, and crypto asset investment activities are the responsibility of the reader.
