- Interest in Dogecoin fell despite the crypto market cap increase to $1.75 trillion.
- DOGE’s price might not hit $0.090 anytime soon.
The total crypto market cap jumped by 3.95% in the last 24 hours, thanks to the fuel provided by price jumps. Out of the top 10 cryptocurrencies, Dogecoin [DOGE] was one of those with a small price increase, AMBCrypto observed.
At press time, DOGE’s price was $0.08, and its market cap was $11.66 billion.
In the meantime, DOGE might continue to trade sideways. This was because the broader market interest in the coin was waning. It was also the same situation with Ethereum [ETH], according to data from Santiment.
One metric that gives an idea of market interest is the social volume.
Like the social volume, the Weighted Sentiment also tells when the market is bullish or bearish about a project.
At press time, Dogecoin’s Weighted Sentiment was -0.863. Weighted Sentiment spikes when the social volume is very high and most messages around a cryptocurrency are positive.
If Bitcoin rises, DOGE bleeds
But as of this writing, the metric was negative. This indicates that most of the texts regarding DOGE were pessimistic. This was also evident in the social volume. On the 5th of February, Dogecoin’s social volume was high, the same as on the 7th of February.
However, the metric at press time dropped, indicating that the search for DOGE throughout social media has been unimpressive. Should this remain the same, participants might not experience a surge in the memecoin’s price in the short term.
As things stand, DOGE might continue to consolidate irrespective of Bitcoin’s [BTC] price action. Previously, the correlation between BTC and DOGE was a solid one. However, AMBCrypto’s assessment of the 90-day correlation showed that the coins were inversely correlated.
Should you look at other options?
According to Macroaxis, the three-month correlation coefficient between DOGE and BTC was 0.46. If the coefficient is close to 1, it implies that both cryptocurrencies follow a similar direction. On the other hand, a correlation coefficient close to zero or -1 suggests otherwise.
For example, if you invested some capital into Bitcoin 90 days ago, you would have made 27.48% in gains. But if you chose to go with Dogecoin, the investment would have yielded a little over 2% in profit.
This hypothesis also infers that DOGE has become less volatile compared to BTC. A look at the DOGE/USD 4-hour chart confirms the lack of volatility as the Bollinger Bands (BB) contracted. In the short term, DOGE’s price might not rise higher the $0.085.
Read Dogecoin’s [DOGE] Price Prediction 2024-2025
Furthermore, the Accumulation/Distribution (A/D) line also showed that participants were not buying the coin. In a situation like this, Dogecoin might keep consolidating.
Should bulls come to its aid, the coin price might rise to $0.090. However, indications from the technical evaluation revealed that the potential rise was unlikely in the short term.