Dogecoin, the popular joke cryptocurrency, showed parabolic growth within 24 hours. History reveals a correlation between Doge spikes and altcoin seasons.
Is Altcoin season coming?
If history repeats itself, Dogecoin’s recent rise could be a perfect sign for all the remaining altcoins.
Although the market cap is not very high, DOGE is undoubtedly one of the most popular cryptocurrencies. Dogecoin is often mentioned by Elon Musk, one of the most influential businessmen on the planet. There is even a joking statement on his Twitter account that he is “the former CEO of Dogecoin”.
With or without the joke, DOGE investors have made substantial profits in the past few days. It reached a low level of around $ 0.0046 yesterday and today peaked at $ 0.0115, up 120% in less than 24 hours. Most of the altcoins were losing value against Bitcoin while BTC exceeded $ 33,000. However, DOGE beat the primary cryptocurrency and recorded a daily return on investment of 95% against BTC.
If the date repeats, the flight may come
Sometimes when the price of Dogecoin rises impressively, it could be a sign that an altcoin season is approaching. The increases in DOGE price coincide with subsequent increases in the altcoin market. This has been especially true in the last few crypto market cycles.
For example, in July 2020, DOGE rose from $ 0.0022 to $ 0.0055 in just a few days, an increase of about 150%. This happened again towards the beginning of this month and what followed was quite interesting.
In less than two months following the DOGE surge in July, Bitcoin’s market dominance dropped by almost 10%, which means altcoins are definitely booming. Many consider August 2020 to be the last true altcoin season.
It is important to note that past performance is not indicative of future behavior. But altcoins have been struggling against BTC lately, as primary cryptocurrency dominance has risen to over 70%. If the Bitcoin price sees some form of consolidation, DOGE’s rise could herald an upcoming altcoin season.