Dogecoin (DOGE) has been the symbol of altcoins for a very long time, especially since it has been around since 2013, making it one of the oldest cryptocurrencies in existence. The inflation meme soon became synonymous with rising prices due to its low face value and concentrated assets.
The history of such unique short-term price increases has led some investors to use the DOGE price as a key indicator for the altcoin season.
But it may make sense. After all, Dogecoin is nothing more than a meme-based coin. There has been no development in the last 2 years, and not many users use the entire node.
Historical Dogecoin Pumps from 2017. Source: TradingView
Also note how dizzying price fluctuations have been the rule instead of the exception for Dogecoin over the last four years. There were 16 weekly performance calculations over 30%, and six showed gains of 100% or more.
To date, 79.2% of DOGE’s total volume trades in 693 headlines. These startling statistics have become a serious source of criticism from Elon Musk, CEO of Tesla and SpaceX. It is worth noting that the recent price increases have been directly related to Musk’s memes and tweets about Dogecoin.
However, to argue that Dogecoin is in fact an indicator of the altcoin season, there must be evidence that these pumps are ahead of the broader positive market results.
Total market value of Altcoin in July 2020 compared to Dogecoin, in US dollars Source: TradingView
On July 7, 2020, DOGE saw an increase of 73% in less than 36 hours. The effect did not last for more than three days, but after two weeks, altcoins began to rise. Altcoin’s market capitalization increased from $ 105 billion to $ 130 billion, up 24% in just 10 days.
Total Altcoin market value in November 2020 compared to Dogecoin, in US dollars Source: TradingView
Meanwhile, the pump in November 2020 says something different, as DOGE followed the path to the remaining altcoins. Furthermore, no alternative currency season followed in the following weeks when the market value settled below 210 billion dollars.
Total Altcoin’s market value in early 2021 against Dogecoin, in US dollars. Source: TradingView
On the other hand, an impressive 182% pumping of DOGE in early 2021, which took place over two days, already indicates a new season. After about 36 hours, the altcoin market value triggered a 50 percent gain, pushing it to $ 340 billion.
An even more dramatic impact occurred on January 18, when the meme coin gained more than 1000%. Three days later, the market value of altcoin began to increase by 60% to $ 560 billion.
Recent activity, however, may offer different explanations, as the altcoin rally started around three weeks before Dogecoin targeted new heights.
Total Altcoin’s market value in April 2021 against Dogecoin, in US dollars Source: TradingView
When we looked at the five pumps analyzed, there was three pieces of evidence that the Dogecoin pump preceded a broader encounter in altcoin coins. For most enterprising traders, however, this ratio may be sufficient.
It should be noted that comparing these results with other major digital currencies would be a good idea before concluding that the coin-operated meme is a good predictor of altcoyon’s season. If Dogecoin lives up to its popularity in an influx of positive headlines, the all-new high of $ 0.61 bodes well for altcoins.
Meanwhile, VORTECS ™ data from Cointelegraph Markets Pro began to define the bullish outlook for DOGE on April 29 ahead of the recent price hike.
Exclusive to Cointelegraph, VORTECS ™ is a mathematical comparison of historical and current market conditions taken from a range of data points, including market sentiment, trading volume, recent price movements and Twitter activity.
VORTECS ™ result (green) at DOGE price. Source: Cointelegraph Markets Pro
As you can see from the chart above, the VORTECS verd valuation began to rally on April 29, peaking at 72 and rising again to 77 points on May 3. It is worth noting that the valuation of VORTECS ™ reached a peak 12 hours before the price. He jumped 45%. To a new full-time high of $ 0.61.