Dogecoin, the meme-inspired cryptocurrency that has captured the attention of investors, appears to be experiencing a slowdown in its price momentum after a period of bullish gains. Nonetheless, renewed optimism is on the horizon, thanks to insights from a crypto analyst who has shed light on potential developments for the beloved meme coin in the upcoming weeks.
On August 10th, crypto analyst Ali Martinez shared data from IntoTheBlock, indicating that Dogecoin might soon be poised for a favorable price movement. This intriguing notion is grounded in the price history similarities between Dogecoin and Shiba Inu (SHIB), another meme-inspired token.
According to Martinez’s post on X (formerly Twitter), a robust positive correlation of 0.74 exists between these two meme coins over the past two months. This suggests that when SHIB’s price experiences a shift, Dogecoin’s price often follows suit in the same direction.
Although this synchronicity hasn’t been evident recently, considering the DOGE price’s lack of significant movement, Martinez remains optimistic about a bullish Dogecoin trajectory. Investors are advised to monitor the token’s performance closely in the coming days for potential signs of a revival.
Dogecoin’s journey has faced challenges sustaining the momentum it garnered from Elon Musk’s support a few weeks ago. After trading within a range, the meme coin recorded a modest 3.1% gain in the past week.
Despite reaching a 7-day peak of $0.07658 on August 5th, Dogecoin retraced to trade below $0.073. The token’s price has rebounded and hovers around its weekly high. This price fluctuation underscores the coin’s struggles in breaking through the $0.08 resistance level, a significant barrier it failed to breach on July 31st.
At the time of writing, Dogecoin’s price is $0.075739, reflecting a 0.3% increase over the past 24 hours. With an impressive market capitalization of nearly $10.7 billion, Dogecoin ranks as the 8th-largest cryptocurrency by market cap.
Intriguingly, CoinGecko data illustrates a noteworthy boost in Dogecoin’s market activity, with its daily trading volume surging by 17.6%. This cryptocurrency currently boasts a 24-hour trading volume that surpasses $430.2 million, underscoring the enduring interest and activity within the Dogecoin market.
As the world keeps an eager eye on Dogecoin’s trajectory and correlations with other tokens, the beloved meme-inspired cryptocurrency continues navigating the market’s complexities, potentially setting the stage for further surprises and price movements.