The Unexpected Silence: Reclaiming $0.07
Crypto analytics firm Santiment shared on Twitter that Dogecoin has experienced a mini-run, surging to reclaim the $0.07 level. This is a significant milestone for the meme-inspired cryptocurrency, as it has been four weeks since it last achieved this feat. The surge in Dogecoin’s value coincided with a large shorting of the cryptocurrency, where traders bet against its rising price. This unexpected upswing caught the shorts off guard, leading to a surge in demand and subsequent price rise. Despite the surge, there has not been a proportional increase in interest and discussions surrounding Dogecoin. This contrast raises questions about the underlying dynamics at play.
Currently, Dogecoin is trading at $0.068347 with a slight increase of 0.10% over the past 24 hours. Weekly charts show a significant rise of 6%. The coin’s trading volume during this period amounted to $2.08 billion, contributing to its market capitalization of $9.57 billion. The current sentiment for Dogecoin’s price prediction is bearish, according to the Fear & Greed Index, which stands at 61, indicating a state of greed among investors.
Analyzing Dogecoin’s chart patterns, there is an encouraging development as its 30-day moving average has surpassed its 200-day moving average, a phenomenon known as a “golden cross.” This is often interpreted as a potential sign of upcoming price breakouts. The correlation between Dogecoin and Bitcoin has been subject to fluctuations in recent months. In May, the correlation was relatively low, but it gradually improved and reached its peak on June 16. Both Bitcoin and Dogecoin experienced a decrease in value during this period. However, the relationship between the two assets began to weaken again, and by June 30, the correlation had dropped. In July, the correlation between the two assets more than doubled compared to the previous period, indicating that Bitcoin will continue to lead the way, with Dogecoin following its path.
Overall, Dogecoin’s recent surge and the lack of proportional increase in interest and discussions raise questions about the underlying dynamics at play. However, the golden cross and the correlation with Bitcoin suggest potential price breakouts and a continued connection between the two assets.
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