Dogecoin, a cryptocurrency that has garnered a lot of attention in recent weeks, appears to be seeing a slowdown in its price momentum after a period of remarkable upward movement. Despite this slowdown, there is renewed optimism about the meme coin’s future performance, as a crypto analyst offers insights into potential developments for Dogecoin in the coming weeks.
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On August 10th, Ali Martinez, a well-known crypto analyst, shared data from IntoTheBlock that points to the possibility of positive price movement for DOGE in the near future
Martinez draws attention to the striking similarity in the price movement of Dogecoin and Shiba Inu (SHIB), highlighting a “strong” positive correlation coefficient of 0.74 between these two meme coins over the past two months. This correlation suggests that Dogecoin often follows in the same direction when SHIB experiences price shifts.
It is worth noting that this correlation did not come into play in recent days, as the price of DOGE remained relatively stagnant, while the value of SHIB increased by 22% last week. Despite this temporary divergence, Ali Martinez remains optimistic and suggests that given the historical correlation, a bullish price move for Dogecoin could be imminent. Therefore, investors are advised to closely monitor DOGE’s performance in the coming days.
Recently, Dogecoin’s efforts to maintain the momentum generated by the support of celebrity Elon Musk encountered challenges. The meme coin has been trading mostly within a limited range since that period, posting a modest 3.1% gain last week.
After a brief spike to a 7-day high of $0.07658 on August 5th, the price of DOGE gave back all of its gains and fell below $0.073. Nevertheless, the coin has recovered and is currently hovering around its weekly high.
This price pattern underscores Dogecoin’s difficulties to overcome the $0.08 resistance level, with a decline of about 5.5% against the important $0.08 threshold after failing to breach it on July 31st.
At the time of writing, Dogecoin’s price stands at $0.075739, up marginally by 0.3% in the last 24 hours. With a market capitalization of nearly $10.7 billion, DOGE ranks 8th among cryptocurrencies in terms of market size.
Market data from CoinGecko shows a remarkable increase in DOGE’s trading activity with a significant 17.6% increase in daily trading volume. Currently, the cryptocurrency has a 24-hour trading volume of over $430.2 million. As the cryptocurrency market dynamics continue to evolve, investors and enthusiasts are paying close attention to potential changes in Dogecoin’s performance and its correlation with other meme coins like SHIB.
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First published in COIN KURIER. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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