Dogecoin Surges 16%, But Here’s What DOGE ‘Risk Indicator’ Says About Rally
25 Outubro 2024 - 8:30AM
NEWSBTC
Dogecoin has enjoyed a sharp 16% rally during the past week. Here’s
how this analyst’s “Risk Indicator” is looking for DOGE after this
run. Dogecoin Risk Indicator Has Given A Red Signal Recently In a
new post on X, CryptoQuant community manager Maartunn has shared a
“Risk Indicator” for Dogecoin. As for what the metric does, the
analyst has explained, I calculated the percentage change over the
last 168 hours (one week). When the percentage change exceeds a
specific threshold, it indicates a potential risk zone. Related
Reading: Is Too Late To Accumulate Bitcoin? What This Indicator
Says The risk here is toward Bitcoin and since the rest of the
sector usually follows in its lead, it would also be toward
cryptocurrencies as a whole. Below is the chart for the indicator
posted by Maartunn. As is visible in the above graph, the Dogecoin
Risk Indicator has been giving a signal during the past week or so
as the DOGE price has registered a notable jump of 16% From the
graph, it’s also apparent that each time the indicator has lit up
in the past few months, the price of Bitcoin has probably hit some
top. Indeed, since the latest signal has appeared, the BTC rally
has been derailed, which implies fast growth in the memecoin’s
price may once again have proven to be a bad omen for the sector.
Now, why does this pattern exist? The reason is that whenever
memecoins break away from Bitcoin and the company, it’s usually a
sign that greed is taking over the market. Historically,
cryptocurrencies have tended to move in the direction that the
crowd expects, so excessive greed often leads to a bearish outcome.
Investors have recently been speculating on memecoins like
Dogecoin, seeking fast returns. Still, if this previous pattern is
to go by, DOGE and others may have to slow down if the market has
to continue its uplift. In some other news, the market intelligence
platform IntoTheBlock has shared an update on how the average
holding time compares between the major cryptocurrency networks in
an X post. As displayed in the above table, Bitcoin is leading in
this metric, with cryptocurrency investors holding for an average
period of 4.4 years before transferring their coins. Related
Reading: Analytics Firm Reveals Why Dogecoin & Apecoin Hit Tops
Ethereum, Dogecoin, and Shiba Inu are all tied for second, with the
figure at 2.4 years for each. Thus, while the memecoins do get a
lot of speculative activity, they have still managed to establish a
userbase that’s as stubborn as that of Ethereum. DOGE Price The
Dogecoin rally has slowed in the last few days as the coin’s price
is still trading around $0.142. Featured image from Dall-E,
IntoTheBlock.com, chart from TradingView.com
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