Dogecoin vs. WIF – How the memecoin climbed by 16% to stake its claim

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  • DOGE has attracted significant liquidity, surpassing its rival – WIF
  • However, a few roadblocks still remain.

As a seasoned analyst with years of experience navigating cryptocurrency markets, I find myself intrigued by the latest developments surrounding Dogecoin [DOGE] and its rival WIF. While it’s undeniable that DOGE has managed to reclaim its position as the dominant memecoin, I must admit a sense of deja vu.

In recent weeks, memecoins have been consistently appearing at the top of the weekly leaderboard for gains. However, AMBCrypto has observed a minor departure from past trends in these cycles.

Instead of previous events where WIF was at the forefront, boasting the largest daily increases, it’s now Dogecoin [DOGE] that stands at the helm again. In just the past week, DOGE has surpassed its peers with a gain exceeding 16%, which is more than double what WIF managed.

For the past seven days, Dogecoin has experienced a highly profitable phase, as it consistently increased in price each day. As a result, its worth is now approaching nearly 0.130 USD – a value not seen since July.

Primarily, Doge’s price movement closely followed Bitcoin‘s 10% surge this week, underscoring its position as the top high-value meme coin during market uptrends.

Source : IntoTheBlock

Reflecting this pattern, there were around 1,950 transactions exceeding $100k involving Dogecoin (DOGE) that reached a recent peak, suggesting robust enthusiasm among individual investors.

Essentially, after a tough period where they lost ground due to the “supercycle” of popular meme coins, Dogecoin investors have largely recouped their losses. This was a time when Dogecoin had stiff competition from other challengers.

For the duration of this phase, meme-based cryptocurrencies with lower capitalization and fresh entries, spearheaded by WIF, leveraged market trends to exert influence on Dogecoin’s standing.

Spot traders capitalized on DOGE’s dip

Nevertheless, despite the decline in DOGE’s price as shown on the charts, savvy traders managed to show remarkable tenacity, tactically initiating a buying phase when the cryptocurrency dipped, referred to as the accumulation phase.

In this method, we follow a tactic similar to what we used with WIF, where traders take advantage of the price drop by purchasing more during periods of selling pressure, thus mitigating it.

Despite WIF approaching the $3 mark merely three days ago, these traders seem to be transitioning into a distribution stage, transferring vast amounts of WIF tokens to exchanges. This action suggests that the price of $2.9 might have been a temporary peak for WIF.

Source : Coinglass

For Dogecoin (DOGE), a comparable trend might unfold if Bitcoin (BTC) drops below $67k. This could potentially spark a wave of panic selling and create apprehension within the market.

In a lively or optimistic financial climate, as governed by the law of volatility, interest in memecoins might diminish, while focus could potentially turn to established high-cap altcoins instead.

Read Dogecoin’s [DOGE] Price Prediction 2024–2025

If this pattern continues, there’s a possibility that Dogecoin could dip towards the $0.12 level, which might serve as a springboard for a potential rebound. Conversely, if anxiety increases significantly, numerous holders might choose to sell off their investments, potentially causing Dogecoin’s value to drop below $0.11.

In summary, the ongoing market trend has brought about a substantial change in the world of meme coins, with Dogecoin (DOGE) receiving a large influx of investment liquidity as a result.

The injection of funds from WIF into DOGE has aided DOGE in reclaiming its position as the leading meme coin based on market capitalization. Yet, there are several obstacles that need to be overcome.

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2024-10-18 11:04