DOGE didn’t rise much this week under pressure from rising rivals Memcoin’s path to upside now hinges on key setbacks
Bitcoin (BTC)’s recent drop below $61,000 has created an opportunity for traders to scoop up meme coins at bargain prices. This sets the stage for smart investors to take advantage of potential short-term profits.
But while many major meme coins are showing signs of bottoming out, Dogecoin (DOGE) feels like a laggard. In fact, it posted the lowest seven-day gain among the top 20 meme coins.
However, despite this poor performance, analysts are buzzing with speculation that DOGE is poised for a big rally and ready to take back the spotlight from emerging competitors. are.
DOGE needs to take advantage of rivals’ interests
DOGE began October with a bearish pullback, hitting daily lows of more than 3%. This wiped out a significant portion of the gains from the previous cycle. It coincided with a bearish MACD crossover on the daily chart and faced resistance at $0.13210.
DOGE is trading at $0.10792 at the time of writing, reflecting a slight increase of 0.10% from the previous day. But there’s a long way to go to get investors in the red back to profit.
However, as AMBCrypto points out, there could be substantial bullish signals hidden in this situation.
Typically, the value of meme coins is driven by community sentiment rather than the attractiveness of Bitcoin. If BTC consolidates and establishes a market high of $61,000, significant capital could flow into these meme coins. This allows traders to maximize short-term profits.
Additionally, a notable 400,000 addresses hold 46 billion DOGE with an average acquisition price of $0.1228 and are currently losing money.
If the meme cycle maintains its hype, FOMO could drive long-term profitability, and these investors can look forward to future profits. But DOGE needs to capitalize on the surge in competitors to fuel its rally. This scenario highlights the changing dynamics in the memecoin space.
Simply put, DOGE, the largest meme coin by market capitalization, is feeling pressure from rising rivals, threatening its market dominance.
This is making Dogecoin more volatile
Meme coins are typically considered to have “bottomed” when the price hits a low, allowing investors to accumulate before a potential reversal occurs. Historically, this has been critical to DOGE’s recovery, as seen in early August when the market crash sent the price below $0.10.
However, the subsequent purchase of 50 million tokens increased the price of DOGE, and for most of this month, the price of DOGE continued to rise.
Since then, net flows have remained mostly negative, a sign of a potential accumulation phase.
However, despite active acquisition by spot traders, the impact on DOGE prices has not been overwhelming. This may indicate possible third party involvement.
Read Dogecoin (DOGE) price prediction for 2024-2025
In other words, Whale’s strategic positioning is making DOGE more volatile compared to resilient stocks like the SPX6900, which has soared more than 120% this week alone.
As a result, the future of DOGE depends on other meme coins. If the hype strengthens, DOGE could confirm $0.170 as support, leading to a potential rally.
Otherwise, you risk falling into consolidation – the more likely scenario.
Next: Find out if XRP rises 500% from current levels to reach new ATH
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