This is How Dogecoin (DOGE) Ties with Ethereum Can Affect It
The post This is How Dogecoin (DOGE) Ties with Ethereum Can Affect It appeared on BitcoinEthereumNews.com.
Amid the broader market uncertainty, (DOGE) price has decreased to $0.0096 after trading at $0.12 just ten days ago. This decline may be tied to Ethereum’s (ETH) performance, as ETH has played a key role in Dogecoin’s past rallies. However, unlike previous instances, Ethereum may now limit DOGE’s chances of rebounding on its own. This on-chain analysis explores the factors behind this shift. Ethereum Takes Part in Dogecoin’s Slow Recovery According to IntoTheBlock, Dogecoin and Ethereum have a high correlation of 0.92 over the past month, meaning DOGE’s price is closely tied to Ethereum’s movements. As Ethereum is the second-largest cryptocurrency, DOGE holders should monitor its performance, as it could heavily influence Dogecoin’s price trends. For those unfamiliar, the correlation coefficient ranges from -1 to +1. A value near +1 indicates a strong relationship, where two crypto assets move in sync. Conversely, a coefficient near -1 suggests that the assets rarely move in the same direction. Recently, BeInCrypto reported how DOGE’s rally largely depends on Bitcoin. However, its solid price movement with ETH might also be a condition for the next level the cryptocurrency’s value hits. Read more: How To Buy Dogecoin (DOGE) and Everything You Need To Know Dogecoin Correlation with Ethereum. Source: IntoTheBlock As of this writing, Ethereum (ETH) is priced at $2,402, marking a 37.46% decline over the past 90 days. If ETH continues to underperform, Dogecoin (DOGE) is likely to follow suit. Another factor that could hinder DOGE’s recovery is its Open Interest (OI) in the derivatives market. OI represents the total number of active contracts. In volatile markets, crypto rallies are often driven by rising OI or spot buying pressure. Dogecoin Open Interest. Source: Santiment A decrease in OI signals traders closing positions and pulling money out, while an increase indicates aggressive buying. For Dogecoin, OI has…
Filed under: News - @ September 4, 2024 5:20 pm