Santiment, the renowned crypto analytics firm, took to Twitter to announce a noteworthy development in the world of Dogecoin. The beloved meme-inspired cryptocurrency, Dogecoin, has embarked on a mini-run, surging to reclaim the elusive $0.07 level.
This surge marks a significant milestone for the meme coin, as it has been four weeks since the cryptocurrency last achieved this feat.
Curiously, this resurgence in Dogecoin’s value coincides with a rather peculiar event. A mere six days ago, the largest shorting of Dogecoin, referred to as $DOGE in trading circles took place.
This massive shorting activity, which involves betting against the rising price of an asset, likely played a role in fueling the recent pump of the coin. It appears that the shorts were caught off guard by the sudden upswing, leading to a surge in demand and subsequent price rise.
Despite this remarkable turn of events, the overall interest and discussions surrounding DOGE have not witnessed a proportional increase.
While one might expect heightened chatter and fervent debates in online forums and social media platforms, the percentage of discussions and interest levels have remained relatively low.
This contrast between the surge in DOGE’s value and the subdued level of discourse is a phenomenon that raises further questions about the underlying dynamics at play.
Dogecoin Price Analysis
DOGE is currently trading at $0.068347. Over the past 24 hours, it has experienced a slight increase of 0.10%, and weekly charts show a significant rise of 6%. The trading volume for the coin during this period amounted to $2.08 billion, contributing to its market capitalization of $9.57 billion.
Despite its market dominance of 0.79%, the current sentiment for DOGE’s price prediction is bearish. The Fear & Greed Index currently 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. This occurrence, known as a “golden cross,” is often interpreted as a potential sign of upcoming price breakouts.
Moreover, the correlation between DOGE and Bitcoin has been subject to fluctuations in recent months. In May, the correlation between the two assets was relatively low, measuring around 0.3. However, this correlation gradually improved and reached its peak at 0.88 on June 16.
During this period, both Bitcoin and Dogecoin experienced a decrease in value, with Bitcoin declining by nearly 14% and Dogecoin by 24%.
Following the peak correlation, the relationship between Bitcoin and Dogecoin began to weaken again. By June 30, the correlation had dropped to 0.14. Interestingly, both assets exhibited a positive trend during this period.
Bitcoin saw a price increase of 24%, while Dogecoin appreciated by almost 10%. Therefore, it can be observed that Dogecoin has been moving in the same direction as Bitcoin, regardless of the correlation figure.
In July, the correlation between the two assets more than doubled compared to the previous period, but it remains below 0.5. Based on recent price behavior, it can be inferred that Bitcoin will continue to lead the way, with Dogecoin following its path.
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