Dogecoin Surges 16%, But Here’s What DOGE ‘Risk Indicator’ Says About Rally
Dogecoin Surges 16%, But Here’s What DOGE ‘Risk Indicator’ Says About Rally Dogecoin has enjoyed a sharp 16% rally during the past week. Here’s how this analyst’s “Risk Indicator” is looking for DOGE after this run. Dogecoin Risk Indicator Has Given A Red Signal Recently In a new post on X, CryptoQuant community manager Maartunn has shared a “Risk Indicator” for Dogecoin. As for what the metric does, the analyst has explained, I calculated the percentage change over the last 168 hours (one week). When the percentage change exceeds a specific threshold, it indicates a potential risk zone. The risk here is toward Bitcoin and since the rest of the sector usually follows in its lead, it would also be toward cryptocurrencies as a whole. Below is the chart for the indicator posted by Maartunn. Looks like the metric has been giving a risk signal recently | Source: @JA_Maartun on XAs is visible in the above graph, the Dogecoin Risk Indicator has been giving a signal during the past week or so as the DOGE price has registered a notable jump of 16% From the graph, it’s also apparent that each time the indicator has lit up in the past few months, the price of Bitcoin has probably hit some top. Indeed, since the latest signal has appeared, the BTC rally has been derailed, which implies fast growth in the memecoin’s price may once again have proven to be a bad omen for the sector. Now, why does this pattern exist? The reason is that whenever memecoins break away from Bitcoin and the company, it’s usually a sign that greed is taking over the market. Historically, cryptocurrencies have tended to move in the direction that the crowd expects, so excessive greed often leads to a bearish outcome. Investors have recently been speculating on memecoins like Dogecoin, seeking fast returns. Still, if this previous pattern is to go by, DOGE and others may have to slow down if the market has to continue its uplift. In some other news, the market intelligence platform IntoTheBlock has shared an update on how the average holding time compares between the major cryptocurrency networks in an X post. The average time the investors of these ten cryptocurrencies hold their tokens for | Source: IntoTheBlock on XAs displayed in the above table, Bitcoin is leading in this metric, with cryptocurrency investors holding for an average period of 4.4 years before transferring their coins. Ethereum, Dogecoin, and Shiba Inu are all tied for second, with the figure at 2.4 years for each. Thus, while the memecoins do get a lot of speculative activity, they have still managed to establish a userbase that’s as stubborn as that of Ethereum. DOGE Price The Dogecoin rally has slowed in the last few days as the coin’s price is still trading around $0.142. The price of the coin appears to have seen some rapid growth recently | Source: DOGEUSDT on TradingViewFeatured image from Dall-E, IntoTheBlock.com, chart from TradingView.com Keshav Verma Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021. Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to. In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions. Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true. Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment.. Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form. Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new. As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money. Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs. Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body. Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.