Despite the buzz in the memecoin market, a shift could undermine DOGE’s dominance.
- DOGE didn’t hike by much this week, pressured by rising rivals Memecoin’s path to a rally hinges on a critical elimination now
Bitcoin’s [BTC] recent dip below $61k has created a chance for traders to scoop up memecoins at bargain prices. This has set the stage for savvy investors to capitalize on potential short-term gains.
However, while many major memecoins are exhibiting signs of bottoming out, Dogecoin [DOGE] finds itself lagging. In fact, it recorded the lowest 7-day surge among the top 20 memecoins.
And yet, despite this underperformance, analysts are buzzing with speculation that DOGE might be primed for a significant rally, ready to steal the spotlight back from its newer competitors.
DOGE needs to capitalize on gains of its rivals
DOGE began October with a bearish pullback, registering a daily low exceeding 3%. This erased a substantial portion of its previous cycle’s gains. It faced resistance at $0.13210, coinciding with a bearish MACD crossover on the daily price chart.
DOGE was trading at $0.10792 at press time, reflecting a modest 0.10% uptick from the previous day. However, it has a long way to go to return loss-making investors to profit.
This situation may be concealing a substantial bullish signal though, as noted by AMBCrypto.
Typically, a memecoin’s value hinges more on community sentiment than Bitcoin’s appeal. If BTC consolidates, establishing $61k as a market top, a substantial influx of capital could flow into these memecoins. This will enable traders to maximize short-term gains.
Source: IntoTheBlock
Additionally, a notable 400k addresses hold 46 billion DOGE with an average acquisition price of $0.1228, currently at a loss.
If the meme cycle keeps its hype, these investors could still see future gains, with FOMO potentially driving long-term profitability. However, DOGE must leverage surges from its competitors to spark its rally. This scenario highlights the shifting dynamics in the memecoin arena.
Put simply, DOGE, the largest memecoin by market cap, is feeling the pressure from rising rivals, threatening its dominance in the market.
THIS is making Dogecoin more volatile
A memecoin is typically deemed “bottomed out” when its price hits a low, allowing investors to accumulate before a potential reversal. Historically, this has been vital for DOGE’s recovery, as seen in early August when a market crash dropped its price below $0.10.
However, a subsequent buy of 50 million tokens boosted DOGE’s price, keeping it rising for most of the month.
Source: Coinglass
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.
In short, whales’ strategic positioning has increased DOGE’s volatility, compared to resilient counterparts like SPX6900 which surged over 120% this week alone.
As a result, DOGE’s future now hinged on other memecoins. If the hype builds, DOGE could confirm $0.170 as support, leading to a potential rally.
Otherwise, it risks falling into consolidation – A more likely scenario.
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