Dogecoin remained one of the cryptocurrencies to watch in recent weeks. However, the price of the token seems to be slowing down after experiencing a significant upward momentum.
Interestingly, optimism regarding the DOGE price may once again increase as a crypto analyst has provided insights into what to expect from the meme coin in the coming weeks.
On Thursday, August 10, crypto analyst Ali Martinez shared data from IntoTheBlock, suggesting that DOGE could soon experience a positive price movement. This suggestion is based on the similarities in price movements between Shiba Inu (SHIB) and Dogecoin.
According to his post on X (formerly Twitter), over the past two months, there has been a "strong" positive correlation of 0.74 between these two meme coins. This indicates that the price of DOGE often moves in the same direction as the price of SHIB.
Interestingly, this has not happened in recent days as the DOGE price has not taken any significant action. In contrast, the value of SHIB has increased by 22% in the past seven days.
However, Ali Martinez pointed out that "given their high correlation coefficient," there could still be a bullish price movement in store for DOGE. Therefore, investors should closely monitor the token's performance in the coming days.
Dogecoin has struggled to maintain the momentum it gained a few weeks ago with the support of Elon Musk. The meme coin has been mostly range-bound since then, recording only a 3.1% increase in the past week.
After reaching a 7-day high of $0.07658 on Saturday, August 5, the DOGE price gave up all its gains and traded below $0.073. However, the token's price has since risen and is hovering around its weekly high.
This price action highlights the meme coin's unsuccessful attempts to break through the $0.08 resistance level, just as Bitcoin has also struggled to break through it. DOGE is currently trading about 5.5% below this important $0.08 zone, having failed to breach it on July 31.
At present, the Dogecoin price is $0.075739, having increased by 0.3% in the last 24 hours. With a market capitalization of nearly $10.7 billion, DOGE is the eighth largest cryptocurrency.
CoinGecko data shows that the market activity of DOGE has significantly increased, with a 17.6% rise in daily trading volume. The cryptocurrency currently has a 24-hour trading volume of over $430.2 million.
In the daily timeframe, DOGEUSDT is approaching the $0.08 mark. It is worth noting that the information presented in this article is based on the analysis and opinion of the mentioned analyst, and investors should conduct their own research and exercise caution before making any investment decisions.
