Dogecoin, Shiba Inu and ApeCoin trade volume spikes as correlation to Bitcoin dwindles
- Meme coins Dogecoin, Shiba Inu and ApeCoin observed a spike in their market capitalization and trade volume early on Monday.
- As the meme coins diverged from Bitcoin, they witnessed a spike in their social volume as excitement surrounding DOGE, SHIB and APE increased.
- Meme coins are likely to experience spike in their prices alongside bullish on-chain metrics.
Shiba-Inu-themed meme coins and NFT token ApeCoin have observed increases in their market capitalization and on-chain metrics turned bullish as these tokens diverged from Bitcoin. Dogecoin (DOGE), Shiba Inu (SHIB) and ApeCoin (APE) witnessed a decline in their correlation to Bitcoin, catalyzing a recovery in meme coin trade volume.
Also read: History shows why investors should pay close attention to Dogecoin price now
Meme coin trade volume rises after correlation to Bitcoin declines
In the ongoing alt season, the altcoin month of July, meme coins Dogecoin, Shiba Inu and ApeCoin witnessed a decreasing correlation to Bitcoin.
Correlation matrix meme coins vs Bitcoin
As seen in the matrix above, the correlation between Bitcoin and meme coins has declined, as meme coins diverge from BTC price action. The asset is currently flirting with the $30,000 psychological level, awaiting directional bias. Meme coins like DOGE, SHIB and APE have offered opportunities for traders to profit from price volatility in the short term.
Meme coins diverge from Bitcoin this week
Typically, bullish on-chain metrics like spike in network activity, daily active addresses or social volume are followed by a rally in the asset. If the pattern repeats, DOGE, SHIB and APE could record recoveries in their prices as excitement among market participants heats up in the ongoing alt season.
New narratives like animal-themed cryptocurrencies and casino/gambling tokens have emerged across DEXes. Find out more about it here.
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Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
