Dogecoin, Shiba Inu struggling to keep up with Bitcoin rally, but there’s a silver lining
The crypto market started the week on a high 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 have performed even worse compared to some of their altcoin counterparts, but this may not be all bad for the digital assets.
Dogecoin, Shiba Inu fails to make big gains
In the last 24 hours, the price of Bitcoin has already risen tremendously to give the pioneering 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 into 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 over this time period, with Shiba Inu being trends lower with only 4.3% gains.
Unlike Bitcoin, both of these digital assets are still recording losses on the weekly chart, while 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 gives them a 50% underperformance compared to Bitcoin.
DOGE rises above $0.075 | Source: DOGEUSD on TradingView.com
All hope is not lost for DOGE and SHIB
Currently, both Dogecoin and Shiba Inu continue to underperform some of their peers, but this could end up being a good thing for the assets. Sometimes it takes a while for the general market to catch up with Bitcoin in terms of performance.
DOGE and SHIB maintain single-digit gains | Source: Coinmarketcap
Once Bitcoin has found a comfortable level and settled down, altcoins usually play catch-up some time later. The same trend was seen back in 2020 when BTC rallied after the stimulus checks expired, but altcoins would catch up later.
If this happens to be the case, there could be higher rallies for DOGE and SHIB. Historically, such a catch-up rally would have seen the digital assets record a rally of no less than 10%. This means DOGE can effectively clear the $0.08 resistance with SHIB potentially reclaiming the 14th spot on the list of largest cryptocurrencies, knocking out Tron’s TRX.
At the time of writing, DOGE is changing hands at $0.072, with a 1.21% decrease in trading volume bringing it to $482 million. SHIB, on the other hand, is trending at $0.00001105, while trading volume is up 10% in the last day to $372.4 million.