Dogecoin (DOGE) and other altcoins are stealing some of Bitcoin’s shine as the benchmark crypto stall at current levels. However, the recent rally could cause trouble for optimistic traders and investors who are waiting for the continuation of the trend.
As of this writing, Dogecoin (DOGE) is trading at $0.08 with a sideways movement in the last 24 hours. During the previous seven days, the meme coin still recorded a profit of 8%. In the crypto top 10, DOGE is one of the best performers, just ahead of Cardano (ADA) and Polygon (MATIC).
Dogecoin Rally Makes Crowd, Is Retrace Soon?
Data from Coingecko shows a positive development for meme coins. The sector recorded about $20 billion in total market cap, a 2% increase in 24 hours, and $1 billion in trading volume over the same period.
In addition to Dogecoin, Shiba Inu (SHIB), Baby Dogecoin, and Bonk have attracted the attention of crypto investors. Both of these assets experienced a 23% rally in the past week alone, indicating an increase in risk appetite from digital asset enthusiasts.
Bitcoin’s rally deep inside the $20,000 region has changed the sentiment of the crypto market. As a result, Dogecoin and other meme coins are rising again and outperforming more important digital assets.
Additional data from the analytics company Santiment is registered increase the level of positive interaction between social media platforms. This suggests that users prefer to take long positions, causing liquidity to drop.
In other words, people experience fear of missing out (FOMO), as noted by Santiment, increasing the likelihood of withdrawal. Market makers can exit long positions before continuing the bullish momentum.
As seen in the chart below, the altcoin sector has recently seen significant growth. Tokens such as APTOS and LCX earn around 40% profit per week.
Santiment wrote:
Altcoins in another impressive run, with some assets recorded up 20% or more. After a 5-day crypto dip, prices seem to have little resistance. Social spikes & FOMO could lead to a peak, or traders will scoff at this race (allowing the rally to continue).