Dogecoin separated itself from the rest of the market with a 9% raise. According to history, this could be bad for Bitcoin.

Dogecoin has jumped 9% in the last 24 hours

While most of the cryptocurrency market saw sideways price action over the past day, Dogecoin proved to be different as its value saw a significant raise.

The chart below shows the DOGE price trend over the past month.

From the chart, you can see that Dogecoin’s price reached $0.134 in this rally and exceeded the previous month’s high. Memecoin is now near its July high, so if this trend continues, memecoin may try to take advantage of it as well.

In terms of weekly returns, the latest jump means DOGE is now up over 24%, making it the best performer among the 50 coins with the largest market capitalization.

Dogecoin isn’t the only memecoin gaining popularity; This asset’s cousin, Shiba Inu (SHIB), has also enjoyed bullish momentum over the past day, although its 5% jump is less impressive than DOGE’s jump.

This latest focus on meme coins may not be the best sign for the cryptocurrency sector as a whole.

The market peaked when memecoins last received attention

According to data from an analytical company Saintlymemecoin’s social dominance surged during Bitcoin’s recent peak above $68,000. “Social dominance” here refers to a metric that tracks the percentage of discussions about the top 100 most popular coins on social media that a given coin or asset group currently holds.

Here is a chart showing how the social dominance of the 6 most popular tier 1 assets has recently compared to the dominance of the 6 most popular meme coins:

As shown in the chart above, memecoin’s social dominance increased earlier as Bitcoin and other stocks surged, suggesting that investors have begun to pay attention to these speculative assets.

However, interest in meme coins coincided with the market peak. “Typically, markets correct the situation when, due to greed, attention shifts from Tier 1 towards more speculative assets,” explains the analyst firm.

With Dogecoin and Shiba Inu withdrawing from the group over the past day, it appears that investor greed is still high, which could potentially lead to more bearish action for Bitcoin and other top assets.

You can see from the chart that the market tends to bottom out as attention shifts back to Tier 1 networks, so it’s possible this will have to happen again if the good run is to continue across the sector.