Why was Dogecoin up 8% on Wednesday?

Dogecoin has seen a significant rally today, following broader market momentum and strong technicals.

Dogecoin (DOGE) performed strongly on Wednesday, continuing the May rally. The token rose to $0.2375, up 8% in the last 24 hours. This movement was driven by a combination of factors, including broader market momentum and bullish technical signals.

For one, technicals flashed positive signals, with Dogecoin’s price forming a bullish flag pattern. Specifically, this is when a price rises sharply, following a consolidation near the top. This typically indicates that a breakout is coming.

A potential driver of this bullish momentum was whale accumulation. Notably, holdings on addresses containing between 1 million and 10 million DOGE rose to 10.56 billion coins on May 20, up from 10.48 billion on May 10.

Dogecoin sees strong month, is altcoin season coming?

Dogecoin’s growth coincided with Bitcoin’s (BTC) all-time high of $109,487, which was a culmination of the May bullish market. Most other altcoins have seen strong growth in that period, including Dogecoin. Notably, in the last 30 days, Dogecoin was up 43.96%. What is more, most of that surge happened between May 7 and May 11.

Still, despite strong performance among many altcoins, Bitcoin continues to dominate investor interest. The altcoin season index remains at just 26 out of 100, indicating that Bitcoin outperformed nearly three-quarters of the top 100 altcoins over the last 90 days.

Moreover, the majority of the top 100 altcoins are still in the red over the past 90 days. This includes major tokens such as Solana, Cardano, Shiba Inu, and even Dogecoin. Specifically, Dogecoin is still down 8.31% over the last three months.

That said, momentum for altcoins appears to be growing. The total altcoin market cap rose from $1.07 trillion at the start of May to its current level of $1.27 trillion. This suggests a potentially positive outlook for Dogecoin as well.