Since the end of April, Dogecoin has been trading in the downward channel. Throughout May, it oscillated in the pattern
Since the end of April, Dogecoin has been trading in the downward channel. Throughout May, it oscillated in the pattern. However, in June, it attempted to break through above. Although some candles appeared outside the channel, DOGE was unable to maintain them here for too long and entered a bearish pattern again.
After about ten days, DOGE successfully flipped the upper trend line as support. Obviously, this laid the foundation for the subsequent 21% increase. In fact, the assets of this emoticon package continue to exceed $0.07280, which is the level of a month ago.
What caused the Dogecoin to soar?
Usually, bullish traders help asset prices rise. However, the situation of Dogecoin is just the opposite. A recent analysis by Santiment pointed out that the DOE market has been witnessing "aggressive short selling". In fact, the biggest bearish bet in 2023 was made six days ago, which "may drive the stock market up". These traders were squeezed out of the market, ultimately providing DOGE with more northbound space.
However, the crowd seems not to have been affected by the latest price trends. The low discussion rate and interest level did not affect the social dominance of Dogecoin very well. This indicates how the community 'overlooks' water pumps.
DOGE-BTC relationship
The correlation between Dogecoin and bitcoin has been fluctuating recently. In early May, this number dropped to 0.3. However, this situation continues to improve, and by June 16th, the correlation reached a peak of 0.88. During the period, both assets depreciated. BTC shrank by nearly 14%, while DOGE fell by 24%.
Starting from the peak, the correlation begins to deteriorate again. By June 30th, the value had dropped to 0.14. This time, both assets showed an increase. BTC rose by 24%, while DOGE appreciated by nearly 10%. Therefore, no matter how relevant, Dogecoin always follows the same direction deviation as Bitcoin.
Now, the correlation between these two assets has more than doubled in July, but it is still below 0.5. Judging from the recent price behavior, it can be said that Bitcoin will continue to pave the way, but Dogecoin will continue to follow. Nevertheless, the magnitude of price fluctuations will not be essentially the same.
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