Dogecoin Surges 24% This Week

The leading meme cryptocurrency, Dogecoin (DOGE), has shown a remarkable 24% increase over the past week, outperforming major digital assets including Bitcoin. However, the DOGE/BTC ratio indicates that the prolonged bearish trend which commenced back in May 2021 remains firmly in place.

Despite the recent gains, the overall trajectory of the DOGE/BTC ratio seems to echo the scenarios of 2020, alluding to a past bear market before eventual surges.

"The perception of dogecoin as a highly speculative asset with no intrinsic value means its price surges are often seen as a warning sign of impending market instability."

History suggests that in early 2021, DOGE outperformed BTC, leading to a nearly 1,000% rise in the DOGE/BTC ratio. However, by May 2021, a market crash dropped BTC from $60,000 to as low as $30,000.

The broader crypto market's current state suggests that it might be premature to fear a speculative bubble akin to previous years, as Bitcoin continues to express bullish momentum.

This week's upward move for DOGE is observed amid optimistic market signals, leading one to speculate about the potential for future outperformance if the prevailing trendlines are breached.

DOGE/BTC's weekly candlestick chart showing market trends.