The crypto market has traditionally oscillated between the Bitcoin/Dogecoin and Altcoin seasons. However, with meme-coins such as Pepe Coin [PEPE] rallying in popularity, community members have coined a new season name: Meme-coin season.
In this piece of article, we’ll explore why Dogecoin has missed out on the meme-coin rally and what the future holds for this iconic cryptocurrency.
Has Dogecoin Outgrown Its Memecoin Roots?
It all started a few weeks ago, when popular memes began to ascend the rankings, defying the overall sluggish trend. The baton was initially held by Baby Doge Coin and Shiba Inu’s BONE. It was subsequently handed on to Pepe, the new boy on the block.
Pepe has been the center of attention for the previous few weeks. It was first assumed that the hype phase would expire quickly. However, that has not been the case. Despite a recent setback, Pepe is still profitable.
Dogecoin, on the other hand, chose to stay out of the meme-coin rally party. DOGE has lost almost 16% of its value since mid-April. During the same time period, Pepe has risen by over 5100%, boosting the fortunes of traders and early investors.
Why is the No. One Memecoin being overlooked?
Dogecoin’s link with Bitcoin has recently decreased. The curve is currently pointing south and reflects a value of 0.35, as seen below. So, what does all of this mean?
A healthy correlation typically suggests that the prices of two assets are inextricably linked and dependent on one another. A deteriorating correlation, on the other hand, signified that their link was disintegrating.
In light of this, it might be argued that Dogecoin is not in a good position to benefit if a broader market rebound occurs. However, this also implies that its impact will be limited if the macro market goes haywire. In a word, Dogecoin’s price swings will be driven by what traders and investors within its ecosystem do, rather than by what Bitcoin does.
At present, things do not appear to be going well for Dogecoin. The average time spent holding transacted coins has decreased by more than 61% in the last week, indicating that investors’ holding period for Dogecoin is shortening.
It is critical for Dogecoin’s conviction to refine in order for it to exit its horizontal trend and begin an uptrend. Without that, it will be difficult for Dogecoin to expand naturally.
Dogecoin has been left behind in the current Meme-coin season as Pepe Coin has surged in popularity and value. Despite its roots as a memecoin, Dogecoin has chosen to stay out of the current rally party, leading to a decrease in value and shorter holding periods for investors.
In addition, the decreasing correlation with Bitcoin also suggests that Dogecoin’s future price swings will be driven more by its own ecosystem rather than by Bitcoin’s influence. If Dogecoin hopes to break out of its current horizontal trend and join the Meme-coin season, it will need to refine its conviction and attract more long-term investors.
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