- Dogecoin (DOGE) outperformed the major cryptocurrencies last week with a gain of 5.63%
- A rise in social media buzz and speculation surrounding the memecoin has fueled Dogecoin’s rally
Dogecoin (DOGE) recently emerged as the weekly top performer among the market’s major cryptocurrencies, with gains of almost 6% in just one week.
The memecoin’s performance stood out, especially as the rest of the market moved in the opposite direction on the charts. In fact, most large-cap assets, including Bitcoin (BTC) and Ethereum (ETH), saw smaller weekly gains of 2.22% and 0.34%, respectively.
Source: CoinMarketCap
Dogecoin’s rally is particularly important in the current market climate as it indicated a renewed interest in memecoins and community-driven tokens that often benefit from the hype on social media and online communities.
While Bitcoin and Ethereum have maintained their market dominance with stable performance, Dogecoin’s recent growth could indicate the possible resurgence of meme-based cryptocurrencies. This move could impact other similar tokens, potentially marking the start of a trend in which community-driven assets gain more attention and market share.
Dogecoin is leading the shift in market sentiment
Source: TradingView
Over the past seven days, Dogecoin has seen large price swings, closing the week at $0.15 after a brief peak near $0.17. The daily candlestick chart revealed notable price movements and spikes in trading volume, especially between October 30 and November 2. This period also saw a sharp increase, followed by a decline as the trading week progressed.
Trading volume was especially evident early in the week, indicating strong buying interest and excitement in the market. However, as the days progressed, trading volumes decreased, reflecting a cool-down phase as the initial momentum waned.
What this meant was that the early week rally may have been fueled by a mix of speculative buying and trader-driven activity.
Source: CoinMarketCap
Source: CoinMarketCap
The weekly comparison charts for Dogecoin (DOGE) against Bitcoin (BTC) and Ethereum (ETH) highlighted DOGE’s standout performance. Dogecoin reached an impressive peak of almost 25% gains on October 30 before later leveling off. In stark contrast, Bitcoin and Ethereum remained largely flat.
Dogecoin’s sharp rally, followed by a moderate decline, saw Dogecoin post weekly gains against the major cryptocurrencies.
This volatility and increased interest in the trade together indicated strong speculative activity, likely fueled by social media buzz. Such a comparison strengthened Dogecoin’s position as a top-performing asset this week.
Source: Santiment
Dogecoin’s social media engagement also saw significant spikes, in line with the price movement. The social volume graph showed a substantial increase in mentions and discussions that started on October 29th and peaked on October 31st. This period corresponded with Dogecoin’s price rise – a sign that increased online attention likely played a role in boosting the asset’s value.
The spike in social volume may have been caused by Elon Musk’s recent comments that X (formerly Twitter) could become half of the global financial system. Dogecoin, closely associated with Musk and X due to his past advocacy for it as a means of payment, often responds to his comments.
A look at the memecoin space
Source: CoinMarketCap
Finally, an analysis of market capitalization trends over the past week showed that most memecoins, such as Shiba Inu (SHIB) and Pepe (PEPE), fell. This meant that DOGE’s rise was somewhat isolated and not part of an industry-wide trend.
This also implied that investor attention and capital flows were uniquely focused on DOGE, reinforcing its standout performance within the memecoin market.
Source: TradingView
A further weekly examination of the price correlations between DOGE and other memecoins such as SHIB, PEPE and FLOKI revealed their different price paths.
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For example, according to the attached chart, SHIB and PEPE suffered declines of 1.25% and 9.42% respectively over the past week. FLOKI’s correlation also decreased by approximately 8.98%.
Such a negative trend among its peers further underlined DOGE’s unique momentum, a sign of its limited positive correlation with the broader memecoin segment.
Credit : ambcrypto.com
