Dogecoin, Shiba Inu Struggle To Keep Up With Bitcoin Rally, But There’s A Silver Lining
The crypto market started off the week on a good streak with the likes of Dogecoin and Shiba Inu rallying alongside Bitcoin. However, both meme coins have failed to follow the growth pattern of the largest asset in the crypto market and performed even worse compared to some of their altcoin counterparts, but this may not be all bad for the digital assets.
Dogecoin, Shiba Inu Fail To Make Large Gains
Over the last 24 hours, the price of Bitcoin has already risen tremendously to give the pioneer cryptocurrency double-digit gains. As expected, Bitcoin’s rally pulled the rest of the crypto market back into the green with Dogecoin and Shiba Inu included. However, despite the explosive rally, DOGE and SHIB have only made conservative gains during this period.
To put this in perspective, the price of Bitcoin has risen over 11% in the last day to put BTC above $24,400. But in contrast, Dogecoin is only seeing 4.4% gains during this time period with Shiba Inu trending lower with only 4.3% gains.
Also, unlike Bitcoin, both of these digital assets are still recording losses on the weekly chart whereas BTC is back in the green after rising over 9%. On the 7-day chart, DOGE and SHIB are seeing losses of 3.02% and 0.67%, respectively. This puts them at a 50% underperformance when compared to Bitcoin.
DOGE rises above $0.075 | Source: DOGEUSD on TradingView.com
All Hope Is Not Lost For DOGE And SHIB
Presently, both Dogecoin and Shiba Inu continue to underperform in comparison to some of their counterparts but this could end up being a good thing for the assets. Sometimes it takes a while before the general market catches up to Bitcoin in terms of performance.
DOGE and SHIB maintain single-digit gains | Source: Coinmarketcap
Once Bitcoin has found a comfortable level and settled, altcoins usually tend to play catch-up a while later. The same trend was seen back in 2020 when BTC rallied after the stimulus checks went out but altcoins would catch up later.
If this happens to be the case, then there could be higher rallies coming for DOGE and SHIB. Historically, such a catch-up rally would see the digital assets record rallies of no less than 10%. This means DOGE could effectively clear the $0.08 resistance with SHIB possibly reclaiming the 14th spot on the list of largest cryptocurrencies, beating out Tron’s TRX.
At the time of writing, DOGE is changing hands at $0.072, with a 1.21% decrease in its trading volume bringing it to $482 million. SHIB, on the other hand, is trending at $0.00001105, while its trading volume is up 10% in the last day to $372.4 million.