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The price of dog-themed cryptocurrency Dogecoin (DOGE) has risen more than 11% in the past day.
At the time of writing, Dogecoin has risen 9.35% to $0.1344 in the past 24 hours and is up 25% on a weekly basis. This is important because several cryptocurrencies recorded small gains or losses each day.
Bitcoin and Ethereum have risen less than 1% in the past 24 hours, with some crypto assets registering slight gains while others have fallen by up to 5%.
Meanwhile, a small number of meme coins were thriving. Dogecoin led the way with a 10% gain, while Shiba Inu, Floki, and MEW all gained almost 5%.
A recent analysis from on-chain analytics platform Santiment shares insights behind this surge. In a recent tweet, Santiment pointed out that discussions around meme coins have increased significantly as coins such as Dogecoin and Bonk proliferate.
📉 Discussions about memecoins increased significantly yesterday due to the proliferation of coins like Dogecoin and Bonk. Typically, markets correct when greed moves the focus away from layer 1 and toward more speculative assets. Today, of course, there is a market-wide decline. pic.twitter.com/ACzHo7TsTY
— Santiment (@santimentfeed) October 17, 2024
As the market shifts its focus away from layer 1 assets, i.e. major cryptocurrencies such as Bitcoin and Ethereum, community discussions about meme coins have increased. This makes sense. The high social dominance of meme coins portends the top of the cryptocurrency market. On the other hand, the high level of interest in Layer 1 signals a market bottom.
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Santiment noted that markets typically face corrections when greed shifts focus away from layer-1 blockchains and toward more speculative assets. Santiment added, “Today, of course, we’re seeing a market-wide decline,” hinting at the impact of this shift in focus.
What will happen to the price of Dogecoin in the future?
Dogecoin has been declining for the past five days and is now on its fifth day of upward trajectory since October 14th. Dogecoin initially started rising after reaching support around $0.102 on October 10th.
Dogecoin’s rise exceeded its daily SMA200 of $0.1294, a level at which DOGE growth has slowed since April. The Bulls attempted to decisively break through this critical level in May and July, but were met with bearish resistance.
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In the coming days, the market will be looking for a decisive break above this level, which would mark the beginning of a new bull market. In this scenario, Dogecoin could rise to $0.14 and then $0.17, with a target price of $0.19.
If profit-taking occurs, the daily moving average of $50 at $0.108 is expected to provide significant support.
