- DOGE didn’t hike by much this week, pressured by rising rivals
Memecoin’s path to a rally hinges on a critical elimination now
As a seasoned analyst with over two decades of experience in the cryptocurrency market, I’ve witnessed the rise and fall of countless digital assets. The current situation with Dogecoin [DOGE] is particularly intriguing.
The drop in Bitcoin‘s [BTC] price below $61k presents an opportunity for traders to purchase memecoins at reduced costs. This situation, in turn, paves the way for smart investors to potentially reap short-term profits.
Nevertheless, unlike other notable meme coins that appear to be stabilizing, Dogecoin [DOGE] seems to be trailing behind. In truth, it experienced the smallest increase over the past week when compared to the top 20 meme coins.
Despite its current poor performance, analysts are abuzz with theories suggesting that DOGE could experience a major surge, potentially regaining its lost limelight from emerging rivals.
DOGE needs to capitalize on gains of its rivals
At the start of October, DOGE experienced a significant drop, reaching a daily low that was more than 3% below its starting point. This decline wiped out a large chunk of the gains made during its previous cycle. The price encountered resistance at approximately $0.13210, which coincided with a bearish MACD crossover on the daily price chart, suggesting further potential downward movement.
At the moment of reporting, Doge was exchanging hands for approximately $0.10792, representing a slight 0.10% increase compared to the prior day. Yet, it still needs significant growth to help recover losses for those investors who are operating at a loss.
This situation may be concealing a substantial bullish signal though, as noted by AMBCrypto.
Generally speaking, the worth of meme coins often depends more on public opinion within their communities rather than the attractiveness of Bitcoin. If Bitcoin stabilizes and sets $61k as a peak, there could be a significant amount of money moving into meme coins. This situation would offer traders an opportunity to capitalize on short-term profits.
Furthermore, it’s worth mentioning that approximately 400,000 wallets contain around 46 billion Dogecoin, with an average purchase price of about $0.1228 each. At present, the holders are in a position where they are experiencing a loss.
If the excitement around memes continues, these investors might still experience further profits, as fear of missing out (FOMO) could prolong profitability. However, for Dogecoin to rally, it needs to capitalize on the momentum from its competitors. This situation underscores the evolving trends in the meme coin market.
Essentially, due to growing competition, Doge (the biggest meme coin based on market value), is facing challenges that could potentially weaken its control over the market.
THIS is making Dogecoin more volatile
A memecoin is usually considered to have “reached its lowest point” or “hit rock bottom” when its value decreases significantly, offering investors an opportunity to buy before a possible price increase. For instance, Dogecoin (DOGE) benefited from this pattern in early August, as a market crash caused its price to fall below $0.10. This has often played a crucial role in DOGE’s resurgence.
Yet, a subsequent purchase of 50 million tokens significantly pushed up DOGE‘s price, causing it to climb throughout much of the month.
Since then, net flows have remained mostly negative – A sign of a potential accumulation phase.
And yet, despite aggressive buyouts by spot traders, its impact on DOGE’s price has been underwhelming. This may hint at possible third-party involvement.
Read Dogecoin’s [DOGE] Price Prediction 2024–2025
Essentially, the strategic placement of whales (large investors) in Dogecoin has led to an increase in its price fluctuations, whereas robust alternatives such as SPX6900 have soared more than 120% just this past week.
Consequently, the destiny of DOGE depends on the success of other meme-based cryptocurrencies. If enthusiasm grows, DOGE might solidify $0.170 as a supportive level, potentially sparking an upward trend.
Otherwise, it risks falling into consolidation – A more likely scenario.
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2024-10-12 01:14