Dogecoin, the leading indicator for alt season?
May 4, 2021. Summarized by summa-bot.
Compression ratio: 27.5%. 1 min read.
The meme-inspired altcoin seems to be a presage for altcoin rallies every time it pumps.
Dogecoin (DOGE) has been the poster child of altcoins for a very long time, particularly as it's been around since 2013, making it one of the oldest cryptocurrencies in existence.
Such unprecedented short-term price rallies history caused some investors to use DOGE price as a leading indicator for an altcoin season.
However, for one to claim that Dogecoin is effectively an altcoin season indicator, there must be evidence of such pumps preceding the broader market positive performance.
Moreover, no altcoin season followed over the next weeks as market capitalization stabilized below $210 billion.
Some 36 hours later, the altcoin market cap initiated a 50% rally, boosting it to $340 billion.
Three days later, the altcoin market cap started a 60% rally to $560 billion.
However, the most recent activity might provide different interpretations as the altcoin rally began some three weeks before Dogecoin aimed for new highs.
Therefore, considering the five pumps analyzed, there have been three pieces of evidence of the Dogecoin pump preceding a broader altcoin rally.
Meanwhile, VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for DOGE on April 29, prior to the recent price rise.