Doge’s key indicators suggest a turning point may be on the horizon, especially with a significant increase in trading volume exceeding $10 million. The surge in high-value trading volume indicates a strong interest from whales in Dogecoin, as they prepare for anticipated price movements.
Historical data further supports this pattern, indicating that Dogecoin’s price tends to soar following a similar decline in the MVRV ratio. For instance, earlier this year, the ratio sharply dropped, followed by an 80% price increase in Dogecoin within two days. This historical precedent adds weight to the current optimism surrounding a potential recovery for Dogecoin.
Despite these bullish indicators, technical analysis shows a mixed outlook. Dogecoin’s price is still below the 20-day moving average, typically indicating continued bearish sentiment. However, the RSI has dropped below 30, suggesting that Dogecoin may be entering a favorable area for buying opportunities, albeit with caution.
In conclusion, while Dogecoin faces direct technical challenges, including bearish pressure indicated by the EMA, the recent surge in high-value trades and the decline in the MVRV ratio provide compelling signals that a reversal in the bullish trend may be imminent.
What “Doge Coins” have gained favor with buyers in this bull market in 2024?
1. Dogwifhat (WIF)
Dogwifhat (WIF) is a dog-themed commemorative coin on the Solana blockchain, which quickly became a cryptocurrency and gained recognition from prominent figures such as Ansem and Hsaka. Its value skyrocketed by 40,000% within a few months, reaching a market cap of $1.5 billion, making it the third-largest dog-themed token after Dogecoin and Shiba Inu. WIF’s rapid growth highlights strong community support and speculative interest, driving the development of meme coin market.
2. Floki
Floki is a dog-themed meme coin. On June 25, 2021, Dogecoin founder Elon Musk tweeted and quickly spread across the internet. Subsequently, Floki was launched in September 2021. Elon announced on Twitter that he would name his pet dog “Floki.” The founder leveraged the rapidly spreading tweet and the influence of Tesla’s founder and CEO to create a meme token. After well-known digital asset market maker and Web3 investment company DWF Labs announced a $10 million investment in FLOKI tokens to strengthen the FLOKI ecosystem, the price of FLOKI surged by 40%. DWF Labs’ investment aims to enhance the utility and market influence of FLOKI for potential growth in the bull market.
3. Dogecoin (DOGE)
Dogecoin (DOGE) is a community-driven meme cryptocurrency used as a medium of exchange like Bitcoin. Dogecoin is mainly used for tipping systems on Reddit and Twitter, rewarding people who create or share high-quality content. The supply of Dogecoin has no limit, with an annual inflation of 5 billion DOGE, accounting for approximately 13% of its circulating supply. According to Nasdaq’s estimation, its inflation rate will decrease to 2.4% by 2040, similar to the current inflation rate of the US dollar, and will continue to decline over time.
4. Bonk (BONK)
Bonk (BONK) is a dog-themed meme coin based on Solana, launched in December 2022, aiming to support and revitalize the struggling Solana community. Similar to DOGE and SHIB, BONK positions itself as a social token focused on community engagement through BonkDAO. The rise in Bonk’s price is attributed to the influence of internet memes and culture, which is part of a broader trend of meme-based cryptocurrencies. Market dynamics, including the recent surge in Bitcoin prices, also drove the rise of Bonk.
5. Shiba Inu (SHIB)
Shiba Inu (SHIB) is a meme-based cryptocurrency created in 2020 by an anonymous individual named Ryoshi. Inspired by Dogecoin, SHIB uses a Japanese Shiba Inu as its motif and is a decentralized community-based cryptocurrency project known as the “Dogecoin Killer.” SHIB is an ERC-20 token issued on the Ethereum blockchain with a supply of 1 quadrillion, with 50% locked in the Uniswap DEX platform for liquidity and the remaining 50% gifted to Ethereum founder Vitalik Buterin. The significant increase in the SHIB token burn rate has contributed to its rapid growth, with 410 trillion tokens exiting active circulation, considered a key factor in enhancing its market position and value, especially in a bull market.
In the end, there are many opportunities and decisions that have not been covered in this article, as these are not things that can be summarized in one article.
