Dogecoin Fall Short of Emulating Bitcoin’s Bullish Surge: Here’s the Reason

Dogecoin

After an extended period of anticipation and speculation, Bitcoin [BTC] has finally surpassed the $30K mark. As the entire cryptocurrency community rejoiced in this milestone, other assets in the market followed suit. Ethereum [ETH] approached $2K, and Solana [SOL] saw a rise of 9.74%. However, meme coins such as Dogecoin [DOGE] and Shiba Inu [SHIB] did not perform as expected.

Meme coins have garnered widespread attention worldwide, with Dogecoin and Shiba Inu being among the most popular crypto assets. However, unlike other assets, these coins only experienced limited gains during the last trading session.

Dogecoin was trading at $0.08474, a modest increase of 2.17% over the past 24 hours. Similarly, Shiba Inu saw a minor increase of 2.29%. Additionally, SHIB was priced at $0.00001115.

The reason behind this lackluster performance can be attributed to the nature of the rally. As observed in the past few days, Dogecoin experienced a spike in value after Elon Musk changed his Twitter logo. However, this bullish sentiment was short-lived, lasting only a day. This suggests that most meme coin rallies are not organic but fueled by hype.

Another contributing factor is the correlation of these assets with Bitcoin. For instance, the correlation between BTC and Dogecoin has been relatively low compared to previous months. As a result, DOGE’s price may remain disconnected from Bitcoin’s recent rally.

Read Also: Is Dogecoin Gearing Up for Another Bullish Run After the Last 33% Rise? Check This Out

Dogecoin Vs. Bitcoin

Furthermore, the chart indicated that Bitcoin underwent a significant consolidation phase and consistent expansion. Nevertheless, the sudden spike in Dogecoin’s value, driven by Twitter hype, was swiftly quashed.

During the past 30 days, Bitcoin has experienced an impressive surge of 46.1%, whereas Dogecoin’s growth was limited to 27.1%. Moreover, Dogecoin’s ongoing rally and price movement highlight its strong correlation with external factors, such as Elon Musk’s induced rallies or speculative activities resembling those of Burger King.

However, do these indications imply that Dogecoin will not witness another bullish rally in the future? Not necessarily. While the asset may participate in positive rallies, its reliance on major cryptocurrencies like Bitcoin and Ethereum will likely remain low. Despite a collectively bullish market, coins like Dogecoin and Shiba Inu are more susceptible to other factors, as their tendency towards crowd-driven rallies outweighs on-chain growth and activity.

Read Also: Dogecoin Trading Volume Hits $3.5B Following Twitter-Induced Rally

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