Sabtu, 29 Oktober 2022

Why The DOGE Price Rally Could Foretell An Altcoin Season

The DOGE price action brings reminisces of the 2021 bull run to crypto traders and market participants. The meme coin is trending to the upside, supported by the Elon Musk Twitter takeover. The billionaire purchased the social media for over $40 billion, and the market expects Dogecoin to play a role in its future. 

At the time of writing, the DOGE price stands at $0.13 for the first time since May 2022. The meme coin records a massive profit of 56% in the last 24 hours and 121% over the previous seven days. The general sentiment in the market is optimistic for the first time since the Ethereum “Merge.” 

Doge price dogeusdt doge dogecoin elon musk
DOGE’s price trends to the upside on the daily chart. Source: DOGEUSDT Tradingview

DOGE Price Forecast Better Days For Altcoins?

Across social media platforms, crypto traders speculate about a potential upside move for altcoins and meme coins. In addition to the DOGE price, Shiba Inu (SHIB) has recorded positive momentum and a 35% profit in the past week. 

According to a pseudonym trader, SHIB’s price lags behind DOGE and could see further upside in the short term. On its way to the upside, SHIB’s 200-day Exponential Moving Average (EMA) could operate as critical resistance. 

Traders are betting on the DOGE price failure. If too many shorts piled up on the token’s price action, DOGE might have fueled to extend its bullish momentum. However, if the DOGE price continues to trend upward, SHIB and other altcoins might break past their resistance levels. 

In that sense, leverage positions to the upside or downside could risk more spikes in Dogecoin’s volatility. With the looming announcement of a Twitter integration, DOGE might see more price action finally breaking out from a tight sideways range. 

Sam Trabucco, the former CEO at Alameda Research in 2021, highlighted that the DOGE price is susceptible to “bullish impetuses.” This phenomenon makes the meme coin’s moves more extreme, with the potential to surpass market expectations. 

Bitcoin About To Be Outperform By DOGE And Meme Coins

Dogecoin’s influence over the crypto market is starting to influence critical metrics. Bitcoin dominance (BTC.D), used to measure the percentage of the market formed by BTC’s market capitalization, is taking a massive loss. 

Bitcoin doge price btc dominance
BTC’s dominance trends to the downside on the daily chart. Source: BTC.D Tradingview

This metric was starting to rebound after a massive selloff. The number one cryptocurrency by market cap is showing bullish momentum, but altcoins could be about to steal its shine. 

If the downside trend in Bitcoin dominance continues, DOGE will likely trend higher, pushing the altcoin sector up with it. Still, at this point in the Dogecoin rally, any position is high risk and vulnerable to volatility. 



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