The speculation raised by comments from Elon Musk has contributed to gaining both meme cryptocurrencies their position in the market. After pulling back for six months, the price of Dogecoin could resume its bullish trend while the rally of Shiba cooling down.
The price of meme cryptocurrency Dogecoin (DOGE) recently jumped by 40% thanks to the profits of Shiba Inu (SHIB) rotating to other markets. An analysis of that situation will allow knowing where the value of the former will be heading.
DOGE is trading at around USD 0.27 and has accumulated a 15.7% profit in the last week. Its daily trading volume is above USD 4 billion, and its market capitalization is approximately USD 37.62, according to CoinGecko.
A comparison between the DOGE and SHIB charts reveals a clear inverse correlation in their prices. That proves that the rotation of profits from Shiba Inu has driven the value of Dogecoin higher.
Those two meme currencies are closely correlated since it is primarily speculation that has gained them their position in the crypto market. For example, the profits recently achieved by DOGE seem to be due to a comment from Elon Musk.
The creator of Dogecoin had said there are no promises in the cryptocurrency ecosystem except for those from scammers. Humorously, the billionaire entrepreneur asked him whether he would send 1 DOGE to someone who gave him 2 DOGE.
Probably, several more tweets will contribute to the profits growing, since that is all this sector of the market segment seems to need. Those interested in investing in DOGE should review the behavior of its price and the signals it leaves.
The Price of DOGE May Regain Its Uptrend While the Rally of SHIBA Cools Down
The weekly DOGE/USDT chart showed that the price of the cryptocurrency meme has remained bullish in the long term. Dogecoin has enjoyed that advantage thanks to its impossibility to mark lower lows.
It is unlikely that the bears are exhausted since they may have already reached the pullback bottom.
After pulling back for almost half a year, the price of Dogecoin could resume its uptrend. At the moment, the rally of Shiba seems to be cooling down, which may help Dogecoin take off.
The price of DOGE should break through the immediate resistance at USD 0.31 to confirm that the bulls have regained control. If that happens, which is very likely, it could even reach a new all-time high.
A market capitalization of USD 37.39 billion suggests that it is hard to think about too large profits. There is not a fundamental base to defend that capitalization, so its sustainability will depend on investors.
The price of Bitcoin has always influenced the behavior of altcoins, of which Dogecoin and Shiba Inu are no exception. However, meme cryptocurrencies depend heavily on comments from well-known figures like Elon Musk and Michael Saylor.
Those interested in investing in DOGE or SHIB have to research before putting their money in them. The information provided in this article could be of great help to them.
By Willmen Blanco