DOGE just dove down by 20% below the $0.01 price point after the recent rally that we saw a few days ago. The “meme cryptocurrency” still has a strong market capitalization of over $1 billion and registered $2 billion in trading volume one day ago as we are reading more in today’s DOGE news.
Dogecoin started to rally a few weeks ago after Elon Musk reminded the market of this cryptocurrency but in spite of the correction, DOGE is still up 100% in the past two weeks. DOGE’s ongoing correction came in spite of the overall strength on the altcoin market as for example, ETH gained 35% against the US dollar over the past day. Bitcoin Cash and Litecoin were moving up as well. Over the past few weeks, Dogecoin acted as a high beta BTC play and it traded similarly to BTC but with a stronger sense of volatility.
When BTC surged about 10% on Friday, Doge experienced a 100% gain but the correlation continued into today, despite it not being perfect. BTC is down by 7.5% in the past 24hours while DOGE just dove 20% in one day. The charts display how DOGE’s value is correlated with BTC as it shows strong volatility over time. the volatility dramatically increased in the past few days as it can be seen in the charts. This could continue in the near future as long as there’s retail contingent on the market which was been the case so far. The market could be illiquid compared to other large-cap altcoins.
While Dogecoin’s rally was long time coming, the market became overbought as the crypto gained 100% in one trading day. While there’s no measure to determine how much of the market is in an overbought condition, there are a few markets where the asset increased 100% in one trading session and it could continue higher. Markets are bound to pullback after the “normal” price regions but it is also likely that the capital cycled from Dogecoin into other more attractive coins like ETH and Cardano. DeFi altcoins have performed well as well in eh past 24hours and for the first time, DOGE’s overall trajectory will be dictated by BTC.
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