Dogecoin’s Flat Performance Raises Red Flags
As crypto traders may recall, meme coins initially began as a joke but in an instant, have now become serious business worth millions and billions. The trend started with Dogecoin (DOGE), which received a serious boost from Elon Musk’s casual tweets, and ever since then, many more meme coins have emerged.
Related: Elon Musk’s Advice to Investors: Don’t Risk Everything on Dogecoin
However, are they adding any real value to the crypto markets? On the contrary, do they pose a threat? Industry experts have rung the alarms. Read on to know why.
Memecoins: Hype vs. Reality
In a recent video update, esteemed crypto analyst Nicholas Merten, known for his widely followed YouTube channel DataDash, has raised a red flag for traders, shedding light on a potential reckoning for meme-coins with a particular focus on Dogecoin (DOGE). Merten’s analysis suggests that Dogecoin’s lackluster performance during the recent meme token craze could indicate looming dangers for the broader meme-coin market.
DOGE To Exit The Spotlight?
During the period of a meme-driven frenzy, Dogecoin failed to demonstrate significant upward movement, with any gains achieved swiftly fading away. Merten astutely questions the authenticity and sustainability of the meme-coin trend, hinting at the possibility that the market is being propped up by initial liquidity rather than grounded in substantial value.
Altcoin Trading: Historical Challenges
What adds weight to Merten’s concerns is his observation that Dogecoin’s behavior often serves as a gauge for altcoin trading. Looking back at historical data, he notes that purchasing Dogecoin has been unfavorable since the altcoin market peaked in April and May 2021. Altcoins, in general, tend to underperform against both Bitcoin (BTC) and the US dollar, with favorable trading conditions occurring sporadically during bull markets and altcoin cycles.
Bearish Outlook For DOGE
At the time of writing, Dogecoin is trading at $0.0706, indicating a 3.2% decline in value over the past 24 hours- clear signs of a fast decline. Dogecoin’s price may be erratic as selling drives it below recent support around $0.0726228307003505 and resistance at $0.0739333058709628.
Do meme coins hold actual value or are they a ticking time bomb for traders? Either way, navigate the markets with caution and do your research!
Dogecoin’s Daily Transactions Peak With the Introduction of ‘DRC-20’ Tokens
The post Dogecoin’s Daily Transactions Peak With the Introduction of ‘DRC-20’ Tokens appeared first on Coinpedia Fintech News
Dogecoin’s daily transactions rose to a lifetime peak of over 645,000 on Sunday after a new token issuance mechanism was launched on its Blockchain. This was ten times higher than the average daily volume earlier in the week, exceeding BTC and Litecoin transactions before returning to previous levels by Wednesday. Dogecoin usually has 20K daily transactions, but the adoption of DRC-20 has raised network activity. This standard enables developers to use Dogecoin for network fees when issuing tokens. Boosts the coin value and enables potential DeFi services on the Blockchain.
Dogecoin’s Popularity Wanes As Rivals Emerge: What Next For DOGE?
Dogecoin, the beloved cryptocurrency heavily supported by Tesla CEO Elon Musk, has continued to remain in the spotlight since its inception in 2013. However, the once-soaring meme coin has recently experienced some turbulence in its journey to the moon.
Dogecoin Struggles as Other Memecoins Emerge
Trading around $0.084 on Friday, the digital currency is down approximately 5.39 percent this week, despite a 20 percent spike year-to-date. The rise of other meme coins, including $PEPE and $WOJAK, has significantly shrunk Dogecoin’s investor community. Despite the decline, Dogecoin remains one of the most traded and liquid digital assets, with approximately 5.4 million holders, according to on-chain data.
Related: Here’s When Traders Can Expect Altcoin Season – Analyst Maps Next Levels For Bitcoin & Dogecoin – Coinpedia Fintech News
Whale Traders Continue to Rule the Dogecoin Market
Whale traders, who make significant transactions involving millions of dollars, continue to be the biggest movers of Dogecoin. Several transactions involving millions of dollars have been processed on the Dogecoin chain in the past 24 hours alone.
50% Drop Around The Corner?
In a recent Twitter video, veteran cryptocurrency trader CrediBull Crypto warned that Dogecoin and other altcoins could drop by as much as 50 percent while Bitcoin continues to pump to ATH (all-time high). According to the analyst, cash flow from altcoins to Bitcoin could increase before the end of the year, leading to a potential drop in altcoin prices.
“We can certainly go higher from here first- but until/unless we flip.16-ish I think sub .05 is still possible. Some have asked, how does DOGE fall 50% with the $BTC bottom already in?”
Dogecoin’s Future: To Invest or Not to Invest?
While Dogecoin has been highly successful in recent times, its future remains uncertain. If Dogecoin were to drop to $0.05, it would mean a 20x increase to a dollar, a target set by most investors, including Elon Musk.
Related: Dogecoin Price Prediction: 2023, 2024, 2025 – 2030
With the recent warning from CrediBull Crypto, investors are left to ponder the risks versus rewards of investing in Dogecoin.
These Indicators Will Lead Shiba Inu And Dogecoin’s Next Bull Run
The year 2022 has been one of the worst years for crypto, however since 2023 has begun it looks like the crypto market will defy bearish sentiment. Today, as Bitcoin made its comeback with a claim of $20,000, the global crypto market cap has also surged above $1 trillion for the first time since November 2022.
Meanwhile, the meme coins like Shiba Inu and Dogecoin have decided to follow the bullish crypto market trend. The meme king, Dogecoin is once again trading above $0.085 which was not seen after December 16, 2022. At the time of publication, Dogecoin is selling at $0.886 with a gain of 10.82% over the last 24hrs.
The way DOGE is increasing its price rally, it seems like the investor sentiment is positive. Amidst the uncertainty of Dogecoin being integrated into Twitter, the Dogecoin Foundation has launched a Development Fund. This fund mainly focuses on enhancing Dogecoin network helping to be one of the large cap crypto.
SHIB And DOGE On A Crucial Move
Meanwhile, Shiba Inu has strongly surged above its crucial resistance of $0.0000102 after a week-long recovery rally. Currently, Shiba Inu has managed to gain 13.59% over the last 24hrs and is now trading at $0.00001076. The much looked forward upgradation on Shiba Inu, Shabarium is one of the main reasons for SHIB’s bullish momentum. This is because Shibarium aims to reduce Shiba Inu network’s transaction fee along with SHIB burning on every Shibarium transaction. The burning mechanism will reduce the circulating supply of SHIB and in turn increase the demand for that token.
However, once Shiba Inu’s Shibarium and Dogecoin’s successful integration into Twitter is completed, both the network is expected to surge even higher. If that happens, Shiba Inu can easily make its move above $0.00001100 while Dogecoin will lead its price action above $0.0920.
Tora Inu is the Next Meme Coin to Watch Since Dogecoin’s Price Retraced After the SEC Raised Rates
There is no denying that Dogecoin has had the best performance in the most recent period. Elon Musk, a contentious businessman who is known to be a fan of the meme coin, had the good fortune to purchase the social media network Twitter.
As a result, Dogecoin has increased by more than 80% during the past week. It had previously been significantly higher, but recent rises in the SEC’s interest rates seem to have contributed to Dogecoin’s recent retracement. Could another meme coin overtake DOGE as the market leader now that it is slowing down a bit? Tora Inu (TORA) appears to be what it might be.
Can the Tora Inu Perform Better?
There is no disputing that meme currencies have had a significant presence in the cryptocurrency market, even if you believe they are not the ideal kind of asset. They are nothing but joke-filled hype trains that foster a strong sense of community. Long-time market leader Dogecoin is no longer the preferred option for investors who want functionality from their meme coins.
Meme coins have not previously served any purpose. However, new concepts have emerged as a result of the development of NFTs, the metaverse, and other technologies. Users can participate in the ecosystem and produce income in a variety of ways thanks to projects.
The project Tora Inu (TORA), which has a good possibility of ousting Dogecoin as we approach 2023, is one of the best examples of this. In addition to having a variety of features that can keep users interested, it also contains distinctive tokenomics that significantly increase the value of the TORA token.
Players can compete with other players’ pets in a play-to-earn game offered by Tora Inu to earn TORA and NFT rewards. Players can engage in multiplayer battles with their pets, and these NFTs can level up to get better stats. Also available for purchase are NFT marketplaces.
Additionally, Tora Inu will feature a metaverse where users can communicate with one another. Land purchases, which have been successful in other metaverses, are another excellent source of income here.
Users will be more intrigued by Tora Inu’s token redistribution and burn mechanisms. Burns occur as network transactions occur, and rewards are dispersed as a result. This results in a decrease in supply, which raises value even more.
The price of TORA increases when additional presale phases are introduced in the ongoing, live presale, which employs an incremental price increase methodology. The Tora Inu beta sale won’t happen until phase 3, and there hasn’t been a private sale either.
The Talk of the Town is Tora Inu
Even before releasing some of its major features, Tora Inu is already establishing itself as one of the most in-demand assets on the market. The metaverse and the debut of the NFT collection are only two things to look forward to in the near future. Due to this, TORA becomes a meme coin to watch as well as a valuable asset in general.
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Dogecoin’s (DOGE) Price Surges, But How Long Will It Sustain Above $0.1?
The crypto space appears to have experienced a slight pullback after undergoing a massive upswing in the early trading hours. While the market cap continues to hover above $850 billion, one wrong move may drag the price of popular altcoins like DOGE, lower. Dogecoin price has been maintaining a strong uptrend for the past 7 days, which is believed to get reversed very soon.
The dogecoin price rally is largely believed to be more lenient on the short-term holders who constantly cause a minor bounce. This fades over time, dragging the price of DOGE to its initial levels, it traded before the rally. After remaining dormant from June and October, the November trade was slightly bullish. The trader’s focus concentrated on the asset as the price marked its lows on the crucial support at $0.07.
The price is currently hovering around the crucial resistance at 0.38 FIB levels, facing difficulties in clearing these levels.
After forming a double-bottom pattern, the DOGE price rises high and currently testing the crucial resistance at the neckline. Therefore, if the price successfully breaches these levels, then the possibility of a bullish breakout emerges. Else, the price may continue to consolidate just below this resistance for a long time frame. However, a notable breakout beyond the neckline may ignite a notable upswing beyond $0.11 but may be restricted below $0.12.
While the price continues to hover within narrow ranges, on-chain metrics display the possibility of a significant upswing soon.
- Whales continue to accumulate more DOGE over time, regardless of the price movements. The number of holders with 10,000 to 10,000,000 DOGE in their wallets has been incremental for the past few months.
- Social dominance which combines the social sentiments and engagements of the asset has been on the rise for over a month
- The DOGE miner revenue peaked during the beginning of the month which had dropped of-let, and has again raised notably
Overall, the Dogecoin(DOGE) price appears to be significantly bullish in the short term, but as the bulls get exhausted, a massive drop could be registered in no time. Therefore, the price is expected to remain consolidated until the market sentiments gear up.
This Price Level Can Be Messiah For Dogecoin’s Bullish Momentum! But There Is A Twist To Watch Out
Dogecoin has been a dominating memecoin in the crypto market since its inception in 2013. However, the crypto winter has created turmoil in the price of several cryptocurrencies, resulting in a 91.8% loss in Dogecoin’s all-time high of $0.73.
Dogecoin has been trading in a consolidated area with a bearish momentum since last week. However, it is now getting some positive price action following Elon Musk’s Twitter acquisition proposal.
Dogecoin Price Is Indicating Bullish Reversals Due To Elon Musk!
Dogecoin has been unsuccessful in bringing a ray of positive hope to investors since achieving its all-time high of $0.73 in May 2021. For the last three months, Dogecoin has been aggressively trading in bearish territory, and it looks like the memecoin is facing trouble even to make a breakout to the North.
However, Dogecoin has been witnessing an uptrend since yesterday from a low of $0.05509 due to Elon Musk’s involvement in his favorite cryptocurrency again, as users will be able to buy his newly launched fragrance product, Burnt Hair. According to CoinMarketCap, Dogecoin is currently trading at $0.06031 with a rise of 6.6%.
Dogecoin’s Next Price Action To Watch Out
Dogecoin, inspired by the concept of another popular memecoin, Shiba Inu, started plummeting due to the crypto market trend, which dragged major cryptocurrencies to the bottom of the price graph.
The daily chart of Dogecoin price shows that the Bollinger band’s lower limit is at $0.055, which is a crucial support level. If Dogecoin fails to hold its momentum above this level, it can soon fall to the price of $0.048.
Dogecoin can initiate a mini bullish reversal from $0.048, as indicated by the EMA-20 and EMA-50. According to our Dogecoin price technical analysis, it can again make an attempt to break the immediate resistance level at $0.06266.
The current price action and Elon Musk’s influence can push Dogecoin to $0.065, but it may be short-lived as the RSI-14 is trading below the 50-level, hinting at a price of $0.05 in the next few trading sessions. To invalidate the bearish analysis, Dogecoin needs to trade above $0.065 for the next couple of weeks before initiating a smooth bull run.
However, the current price action may lure investors into buying a significant volume of DOGE and selling later, which can result in a nightmare for Dogecoin’s future price as it can make a breakout on the downside at $0.047 and soon witness a sharp fall to $0.025 with a 42% decline.
The price is expected to worsen following several market factors and the bearish trend of the crypto market. If Dogecoin comes over any negative news and gets impacted, the price can further drop and trade below $0.01. Therefore, it is advised to investors to do their own research and conduct experts’ opinions and investment advice before investing in the current volatility situation.
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What Would Happen If Dogecoin’s (DOGE) Price Undergoes Another 10x Run?
Dogecoin price had once been a well-talked topic within the crypto space as it was largely responsible for igniting the 2021 bull run. The 80% hike, followed by a 100% hike for three days straight, attracted the public’s attention. The DOGE price, however, lost its hold just as all other assets reached their peaks and has since been falling sharply.
As seen in the above chart, the DOGE price has been largely consolidated within the 0 & 0.23 FIB levels, failing to surpass the latter levels multiple times. If the trend continues, the price may be compressed between the 0.23 FIB level and the lower trend line, which could relieve the tension by bringing about a significant upswing in the near future. In such a case, a jump towards the next FIB levels at 0.38 at $0.07 may be expected soon.
While a bullish scenario prevails, the on-chain metrics continue to flash bearish signals!
A Huge Drop in Development Activity
The development activity on the platform has dropped heavily over the past couple of months. Moreover, fewer possibilities for a rise may be anticipated, which may in turn harm the DOGE price in the coming days.
Huge Drop in the Whale Holdings
The above chart signifies that the whales have been constantly losing their hold since the beginning of 2022. The holders holding between 10K and 10M DOGE have witnessed nearly a drop of more than a billion tokens at the moment.
Massive Slash in the Daily Active Address
The number of active addresses was rising slightly after the price rebounded from the lows in June. However, the levels have dropped below the previous lows, indicating the shift of focus of traders to other platforms.
Collectively, the Dogecoin(DOGE) price continues to remain within the influence of the bears and that said, is more prone to shed more gains in the coming days.