- DOGE surges 14%, reaching four-month high amid Bitcoin’s rise.
- Other memecoins like SHIB and PEPE also experience significant gains.
In the latest market shift, Dogecoin (DOGE) has surged by 14% over the past 24 hours, reaching a four-month high of $0.1684, as its trading volume skyrocketed 119%. This rally comes amid Bitcoin’s surge past the $71,000 mark, which has contributed to renewed interest in the memecoin sector, with DOGE emerging as a leading player.
Dogecoin’s impressive performance isn’t isolated, as other notable memecoins are riding the same wave. Shiba Inu (SHIB) saw a 9% increase, and PEPE gained 8%, while other tokens like Wall Street Inu Finance (WIF) and POPCAT climbed by 9% and 11%, respectively. FLOKI, yet another popular dog-themed token, also gained by 9%.
The memecoin rally appears to align with broader trends in the crypto market, where investors are gravitating towards risk-on assets as major cryptocurrencies experience substantial growth. Historically, memecoins like DOGE have enjoyed popularity during bull markets, often attracting high-volume trading and retail investor interest.
Memecoin Rally Chart, Source: CMC
Resurgence On Stay?
The resurgence of interest in Dogecoin has, in particular, been linked to community-driven support. And periodic boosts from prominent figures like Elon Musk, who has openly endorsed the token.
However, the current rally raises questions about the sustainability of these gains. While trading volumes indicate strong short-term momentum, the inherently volatile nature of memecoins warrants caution for investors.
Analysts suggest that as long as Bitcoin and Ethereum continue their upward trends, DOGE and its counterparts may see further gains. Yet, market corrections are common in the meme sector, making risk management essential for those joining the rally.
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