Based on my analysis of the historical data and current market trends, I believe that Dogecoin could experience a price rally around November 2023, which is approximately seven months after the Bitcoin halving in May 2024. However, it’s important to note that memecoins like Dogecoin are highly speculative and their value is largely driven by hype and community sentiment rather than fundamental factors.
The value of Dogecoin (DOGE) decreased over the past month, but according to historical trends, there’s a possibility that it could begin another surge towards record-breaking prices approximately seven months following the Bitcoin halving event.
Dogecoin price rally in November?
The price of Dogecoin has dropped approximately 8% in the past day and more than 18% within the last month. However, this decline aligns with the price trend from the previous cycle, implying a potential continuation towards reaching new peak prices.
In the preceding cryptocurrency boom, Dogecoin experienced a surge in value as early as May 2020 – approximately seven months following the 2020 Bitcoin halving event, as indicated by TradingView’s data.
I’ve observed that Dogecoin reached its peak price of $0.73 on May 8, 2021, marking a significant milestone exactly one year after the Bitcoin (BTC) halving event in 2020. However, at present, Dogecoin is experiencing a decline and currently sits 73% below its past all-time high.
If the current trend continues, Dogecoin’s price could hit a new record high by April 2025. Yet, predicting trends for memecoins like Dogecoin, whose values are largely driven by speculation, can be challenging using technical analysis.
As an assistant observing the memecoin market, I’d describe it as a frenzy fueled primarily by avarice, where participants seem to disregard the significant risks involved. This assessment comes from Robby Greenfield, the founder of Umoja Labs.
However, Greenfield expects some memecoins to maintain a high valuation. He told CryptoMoon:
“Some of these tokens, like DOGE and PEPE will continue to legitimize as exchanges like Coinbase introduce memecoin futures markets. Given the large, cult-like communities behind these assets, it’s likely that they will remain as higher-cap cryptos than even most legitimate project-backed tokens.”
Memecoins offer fairer market access?
In the year 2024, a large number of cryptocurrencies were introduced into the market with substantial fully diluted valuations (FDV) and heavy investments from venture capitalists (VC). Some industry observers have voiced concerns, suggesting that an influx of VC funding could negatively impact the future growth of these digital currencies. In simpler terms, some analysts believe that too much VC money chasing after cryptocurrencies might not be beneficial for their long-term success.
From an observer’s perspective, memcoins without venture capital investments might appear as the most equitable investment opportunities for retail investors, as suggested by Gianluca Sacco, COO of VALR.
“These tokens are being seen as the fairest opportunity to participate in the crypto market right now, while the communities around them are just a lot of fun to be involved in… Many feel burnt by high FDV, low issuance tokens that have historically been offered by token projects at deep discounts to insiders and VCs at the expense of retail users.”
I’ve noticed an impressive surge in the value of several meme coins over the past week. According to my observation using TradingView, Pepe (PEPE), Shiba Inu (SHIB), Dogewifhat (WIF), and Floki (FLOKI) all experienced double-digit percentage gains.
From my perspective, Diane Dai’s observation implies that there has been a brief increase in popularity for certain memecoins recently. However, this does not necessarily mean that we are experiencing a full-blown “memecoin altseason,” as some may have hoped.
“Despite the double-digit price increases, trading volume remains low, indicating insufficient market liquidity. The significant price fluctuations of memecoins are not enough to prove an influx of investors into the memecoin market after the halving event.”
In the last 24 hours, the trading volume for memecoins decreased by approximately 17%, amounting to around $6.58 billion. According to information from CoinMarketCap, the total market value of memecoins also dipped by nearly 6%, reaching roughly $52.8 billion.
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2024-04-25 23:56