- DOGE has experienced a massive exodus from retail buyers as speculation around its fundamentals finally took its toll.
- But is this the start of something new for DOGE?
As a seasoned crypto investor with battle scars from countless market cycles, I’ve seen my fair share of memecoins rise and fall like waves on a stormy sea. The recent exodus of retail buyers from Dogecoin [DOGE] is a familiar sight, but I can’t help but wonder if this might be the beginning of something new for DOGE.
Only a small number of meme coins managed to maintain gains over the last 30 days, with many, including Dogecoin (DOGE) and both cat and dog coins, experiencing double-digit losses and falling significantly below their psychological thresholds. The largest meme coin, Dogecoin [DOGE], has also seen a decline.
Nevertheless, as the market recovers from its recent downturn, memecoins such as DOGE have started to regain some vitality, experiencing a 11% surge compared to the prior day’s closing price.
Progress is gathering pace, but DOGE still faces a considerable journey to make up for its losses and drive its backers towards profitability again.
How can DOGE break out?
Taking a quick look at the day’s graph shows undeniable indications of profit-taking, as Dogecoin (DOGE) is approaching $0.50 – a price point it hasn’t been near for about three years. For prudent investors, deciding to sell at the peak was an obvious choice.
Currently, since the Relative Strength Index (RSI) has fallen beneath 40, there appears to be a possibility of a recovery. A lower RSI value frequently suggests that an asset may be undervalued, making it an attractive prospect for investors to take advantage of the price drop by purchasing at a discounted rate.
On the other hand, history serves as a reminder to exercise caution. Though occasions exist when DOGE’s Relative Strength Index (RSI) falling beneath 40 may ignite brief bullish surges, its well-known volatility consistently leaves traders in a state of suspense.
Dogecoin achieved an overly excited state primarily when its trajectory matched the high point of Bitcoin‘s surge.
Could Bitcoin’s upward trend potentially break Dogecoin’s two-week price range? Following several weeks of heavy red candles on the daily Dogecoin chart, there appears to be some respite as it experiences a substantial double-digit surge.
This rise in value occurs at the same time as Bitcoin bouncing back from its recent fall, leading us to think that the positive trend might push Dogecoin even higher.
On the other hand, while memecoins like DOGE might appear attractive due to their relatively low cost, it’s not often straightforward. Retail investors are showing indications of weariness, and the speculative essence of these coins is causing increasing strain—a pattern that deserves further investigation.
Is it still worth the risk?
For about a month now, from mid-November, there’s been little trading activity with DOGE in the retail market, as major holders have increased their control over the market, which is clearly shown in the chart presented below.
Source : IntoTheBlock
The increasing control of big players with large stakes continues to shape the DOGE market, a trend we first spotlighted here at AMBCrypto.
As a crypto investor, I’ve noticed an intriguing change: retail buying activity seems to be dwindling, which has refocused attention on Dogecoin’s questionable fundamentals. This recent surge might not be indicative of a genuine shift in the market sentiment, but rather whales taking advantage of the dip.
For a while, the whales’ purchases might propel Dogecoin up to around $0.40. However, the true challenge lies ahead once that level has been reached.
Read Dogecoin [DOGE] Price Prediction 2024-2025
To reach the price range of $0.48 – $0.50 for this meme coin, it’s not enough to merely hope for it; instead, we need a combination of several key factors. A strong bullish movement in Bitcoin, an influx of new retail investments, and whales stepping away from their manipulative strategies are all essential components that will help propel the price upwards.
Should all these elements fall into place, it’s quite possible that DOGE will surge ahead. However, if these elements fail to materialize, investing in this popular internet currency could still prove to be a somewhat risky endeavor.
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2024-12-22 02:16