Memecoins are surprisingly shiny right now.
Dogecoin [DOGE] is leading the move, while several other tokens have been posting even bigger gains. Hence, the question: Is the sector about to take off again?
Dogecoin leads the memecoin rally
At the time of writing, memecoin leader DOGE was up by about 33% month-to-date after trading near $0.091, at the time of writing.
The scale of the memecoin’s bullishness was evidenced by the strong buying pressure too, with DOGE’s RSI above 78. The CMF was positive at 0.19 too. This indicated that even after the rally, money was continuing to flow into the asset.
That’s not all though as derivatives traders might have woken up as well. DOGE’s Open Interest (OI), for instance, went up to around $635 million, with the funding rate positive too. This implied that traders were leaning bullish and willing to pay to hold their longs.
Now, while the pace may be obvious, the memecoin’s next move may not be as straightforward as one would think.
DOGE is fast, but other memecoins are faster!
Given that the entire memecoin sector has posted commanding weekly gains, it’s no wonder then that traders have been rotating into higher-risk tokens.
Official Trump [TRUMP] , for instance, gained by around 79%, while Pudgy Penguins [PENGU] rose by 61%. Pepe [PEPE] too climbed by nearly 60% over the week.
Bonk [BONK] and SPX6900 [SPX] also recorded gains of about 38% and 45%, respectively. Even Shiba Inu [SHIB] gained by about 22%.
These findings puts DOGE’s 31% weekly rise into perspective. In fact, it may be wide enough to look like a category-wide risk-on trade.
However, this does not mean the altcoin market has automatically entered altseason either.
What does the bigger picture say?
Recent gains notwithstanding, the Altcoin Season Index had a reading of 39 at press time. The same had a reading of 44 last week and 53 last month. This implied that Bitcoin might still have the upper hand
The prevailing conditions might just be a more focused memecoin rotation than a full altcoin rally.
What should traders watch out for then? Well, keep an eye on whether DOGE can hold its breakout, or whether the OI rises without becoming too stretched.
The Altcoin Season Index climbing above 50 should be an indication too.
Final Summary
- Dogecoin jumped by about 33% while TRUMP, PENGU and PEPE recorded even bigger gains.
- Altseason index had a reading of 39, implying that Bitcoin might still have the upper hand.
