Why a DOGE price rally could herald altcoin season

DOGE’s price action reminds cryptocurrency traders and market participants of the 2021 bull run. Meme tokens are on an uptrend on the back of Elon Musk’s Twitter acquisition. The billionaire bought social media for more than $40 billion, and the market expects Dogecoin to play a role in its future.

At the time of writing, DOGE price is hitting $0.13 for the first time since May 2022. Emoji Coin has recorded a huge profit of 56% in the past 24 hours and a huge profit of 121% in the past 7 days. Optimism for the first time since the Ethereum “merger”.

DOGE price is trending up on the daily chart. Source: DOGEUSDT Tradingview

DOGE Price Predicts Better Days for Altcoins?

Across social media platforms, cryptocurrency traders speculate on potential upside for altcoins and meme coins. Excluding DOGE prices, Shiba Inu (SHIB) recorded positive momentum and a 35% profit over the past week.

According to pseudonymous traders, SHIB Price lags behind DOGE and rise further in the short term. On the upside, SHIB’s 200-day exponential moving average (EMA) could act as a key resistance.

Traders bet on DOGE price to lose. If the coin’s price action piles up too many bears, DOGE may extend its bullish momentum. However, if DOGE prices continue to rise, SHIB and other altcoins may break above their resistance levels.

In this sense, a leveraged position up or down could risk more Dogecoin volatility spikes. With the looming announcement of the Twitter integration, DOGE may see more price action finally breaking out of the tight sideways range.

Sam Trabucco, former CEO of Alameda Research in 2021, emphasized that DOGE prices are vulnerable to “bullish momentum.” This phenomenon makes the trend of meme coins more extreme and may exceed market expectations.

Bitcoin will be surpassed by DOGE and Meme Coins

The impact of Dogecoin on the cryptocurrency market is starting to affect key metrics. Bitcoin dominance (BTC.D), which measures the percentage of the market made up of BTC market cap, is suffering huge losses.

bitcoin doge price btc dominanceBTC’s dominance on the daily chart is trending down. Source: BTC.D Tradingview

After the massive sell-off, the indicator started to rebound. The number one cryptocurrency by market cap is showing bullish momentum, but altcoins may be about to steal its shine.

If the downtrend in Bitcoin dominance continues, DOGE could move higher, propelling the altcoin sector higher. Nonetheless, at this point in the Dogecoin rally, any position is high risk and vulnerable to volatility.

Source of information: Compiled from NEWSBTC by 0x Information.The copyright belongs to the author and may not be reproduced without permission

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