Widely used meme tokens The 9% rise in dogecoin (DOGE) and shiba inu (SHIB) over the last 24 hours suggests that cryptocurrency traders are placing riskier wagers as a result of bitcoin’s (BTC) impressive performance. The price of SHIB and DOGE tokens increased on Thursday when social media site X, formerly known as Twitter, introduced a video calling option for premium customers, even though there were no obvious triggers for the increase. Given that some traders had previously anticipated that X will include DOGE as a payment option, this could be an indication of irrational excitement. Elon Musk, the CEO of X, has often lauded dogecoin as one of his favourite cryptocurrencies. In 2021, he even devoted a part of his visit on the well-liked TV programme “Saturday Night Live” to the meme coin.
Data shows that the coins’ cumulative trading volumes rose from $350 million on Monday to $1.2 billion on Thursday. Furthermore, open interest in DOGE and SHIB futures increased by more than 50%, a sign of traders placing larger wagers in anticipation of further volatility in the days ahead. The price of bitcoin increased by almost 30% last week due to hopes of a spot exchange-traded fund (ETF), but it then declined. Up to 40% was added by ether (ETH), solana (SOL), and xrp (XRP). During the same time frame, DOGE and SHIB only added 15%. Even though the tokens were generally more volatile, they nevertheless performed worse than other well-known cryptocurrencies.
In the past, a surge in these two tokens has signaled the local peak of bitcoin and other significant cryptocurrencies. “Every time that the price of DOGE starts rising rapidly, there’s a market-wide crash following just moments later,” stated a December analysis by blockchain analytics firm Santiment. The company stated in its analysis that the local peak for bitcoin and the cryptocurrency sector in 2022 was marked by eight dogecoin price surges.