Dogecoin Outpaces Bitcoin with 3.1x Growth Despite Volatility

• Dogecoin has demonstrated a remarkable 3.1 times growth, significantly outpacing Bitcoin’s 1.38 times growth, underscoring its higher potential for growth in the cryptocurrency market.
• Insights into Dogecoin indicate that its predictive performance is influenced by market volatility and historical trends, especially under high ATR levels (>0.024), which complicate the reliability of predictive models.

The cryptocurrency market often resembles a rollercoaster, and few assets epitomize this volatility as vividly as Dogecoin (DOGE). Dogecoin has garnered a dedicated following and experienced meteoric price surges since its inception in 2013. Dogecoin’s price movements are heavily influenced by market sentiment, making it notoriously unpredictable. 

Recent analyses of Dogecoin have shed light on the intricate challenges tied to its predictive accuracy, and its historical trends.

Understanding ATR and Its Impact on Predictive Accuracy

A thorough examination of DOGE’s behavior reveals how heightened levels of Average True Range (ATR), specifically above 0.024, compel predictive models to operate outside their established parameters, raising questions about their reliability. ATR is a volatility indicator that measures the degree of price movement within a specific time period, and high values can signal increased uncertainty in price forecasts.

Interestingly, the period during which the model successfully predicts DOGE with a high accuracy spans from November 11, 2021, to November 11, 2024. This time frame corresponds to the first quarter of Lunation 83 and extends to the first quarter of Lunation 120 in the Metonic cycle, creating a span of 37 lunations. 

As the models suggest, Dogecoin holders should prepare for a tumultuous journey. The coin has a reputation for sudden surges and dramatic falls, and these predictive insights hint that it may soon enter a “full banana mode.”

Dogecoin Outpaces Bitcoin in Recent Growth Trends

Adding an interesting dimension to the discussion, analysts have been comparing Dogecoin’s growth against Bitcoin (BTC). An evaluation in November 2024 highlighted an impressive trend where, despite DOGE and BTC exhibiting similar growth patterns over eight days, Dogecoin significantly outperformed Bitcoin recording a growth rate of 3.1 times compared to Bitcoin’s 1.38 times. This disparity suggests that Dogecoin’s potential for growth may be substantially higher than that of its more established counterpart.

November 2024 market dynamics: #BTC vs #DOGE – a comparative analysis.#DOGE took an early lead, but the outlined growth phase is equal, despite a 2-day gap.
This demonstrates a close correlation between #BTC and #DOGE across the entire measured sample.

Gains in 8 days:… pic.twitter.com/giINwa41GH

— Master Kenobi (@btc_MasterPlan) December 5, 2024

Currently, Dogecoin boasts a market capitalization of approximately $66 billion, which stands in stark contrast to Bitcoin’s valuation of about $1.9 trillion, creating a ratio of roughly 1:29. Dogecoin reached a weekly high of nearly $0.46 after Bitcoin surpassed the $100,000 mark late Wednesday. 

Although DOGE has dipped slightly since that peak, it remains the top gainer among the largest cryptocurrencies and is the most popular meme coin among the top 100. Currently priced at $0.4509, DOGE is up over 5% today, outpacing Bitcoin’s 1%. Despite a recent slowdown, DOGE has seen a remarkable 163% increase in the last 30 days since Donald Trump’s election victory. Bitcoin, having peaked at $103,679, is currently trading at $99,621.