- Dogecoin (DOGE) outperformed major cryptocurrencies last week with gains of 5.63%
- Increased social media buzz and memecoin speculation fueled Dogecoin rally
Dogecoin (DOGE) recently became the best performing coin weekly among the major cryptocurrencies in the market, recording gains of almost 6% in just one week.
Memecoin’s performance stood out, especially as the rest of the market moved the other way in the charts. In fact, most large-cap assets, including Bitcoin (BTC) And Ethereum (ETH)saw more modest weekly gains of 2.22% and 0.34%, respectively.
Source: CoinMarketCap
Dogecoin The rally is particularly important in the current market climate because it highlights a renewed interest in memecoins and community tokens that often benefit from hype from social media and online communities.
While Bitcoin and Ethereum have maintained their market dominance with stable performance, Dogecoin’s recent growth could indicate the possible resurgence of meme-based cryptocurrencies. This move could have implications for other similar tokens, potentially marking the start of a trend in which community assets attract more attention and market share.
Dogecoin leads market sentiment shift
Source: TradingView
Over the past seven days, Dogecoin has seen significant price fluctuations, closing the week at $0.15 after briefly peaking near $0.17. In fact, the daily candlestick chart highlighted notable price movements and spikes in trading volume – particularly between October 30 and November 2. This period also saw a sharp rise, followed by a pullback as the trading week progressed.
Trading volume was particularly pronounced early in the week, indicating strong buying interest and market enthusiasm. However, as the days passed, trading volumes declined, reflecting a cooling phase as the initial momentum faded.
This meant that the rally earlier in the week may have been fueled by a mix of speculative buying and trader-driven activity.
Source: CoinMarketCap
Source: CoinMarketCap
Weekly comparison charts of Dogecoin (DOGE) against Bitcoin (BTC) and Ethereum (ETH) highlighted DOGE’s exceptional performance. Dogecoin reached an impressive peak of almost 25% gains on October 30, before later stabilizing. In contrast, Bitcoin and Ethereum remained largely stable.
Dogecoin’s sharp rise, followed by a moderate decline, allowed it to maintain a lead in weekly gains against major cryptocurrencies.
This volatility and increased interest in trading, combined, indicated strong speculative activity, likely fueled by social media buzz. Such a comparison solidified Dogecoin’s position as the best performing asset this week.
Source: Santiment
Dogecoin’s social media engagement has also seen considerable spikes, corresponding to its price action. The social volume graph revealed a substantial increase in mentions and discussions starting on October 29 and peaking on October 31. This period corresponds to Dogecoin’s price rise – a sign that increased online attention likely played a role in propelling the asset’s value.
The increase in social volume may have been driven by Elon Musk’s recent comments that X (formerly Twitter) could become half of the global financial system. Dogecoin, closely linked to Musk and X due to its past advocacy for this payment method, often reacts to his remarks.
A look at the memecoin space
Source: CoinMarketCap
Finally, analysis of market cap trends over the past week revealed that most memecoins such as Shiba Inu (SHIB) and Pepe (PEPE) have declined. This means that DOGE’s rise has been somewhat isolated, rather than part of an industry-wide trend.
This also implied that investor attention and capital flows were solely directed towards DOGE, reinforcing its stellar performance in the memecoin market.
Source: TradingView
A closer weekly look at the price correlations between DOGE and other memecoins such as SHIB, PEPE, and FLOKI revealed their distinct price trajectories.
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According to the attached chart, for example, SHIB and PEPE suffered declines of 1.25% and 9.42%, respectively, over the past week. FLOKI’s correlation also dropped by around 8.98%.
Such a negative trend among its peers further highlighted DOGE’s singular momentum, a sign of its limited positive correlation with the broader memecoin segment.