According to CoinDesk, key indicators for Dogecoin (DOGE) suggest a potential turnaround may be on the horizon, especially with a significant increase in trading volume exceeding $10 million. The surge in high-value trading volume indicates strong interest from whales, who are preparing for anticipated price movements.
Historical data further supports this pattern, indicating that Dogecoin’s price has surged following similar declines in the MVRV ratio. For example, 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 optimistic sentiment 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 region favorable 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 on the horizon.
Which “Dogecoin” coins are favored by buyers in this bull market in 2024?
1. Dogwifhat (WIF)
Dogwifhat (WIF) is a dog-themed commemorative coin on the Solana blockchain that quickly became a cryptocurrency, gaining recognition from notable figures such as Ansem and Hsaka. Its value surged by 40,000% in just a few months, reaching a market capitalization of $1.5 billion, making it the third-largest dog meme token after Dogecoin and Shiba Inu.
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 utilized the rapidly spread tweet and the influence of Tesla’s founder and CEO to create a meme token.
3. Dogecoin (DOGE)
Dogecoin (DOGE) is a community-driven meme cryptocurrency used as a medium of exchange, similar to Bitcoin. Dogecoin is primarily used for tipping systems on Reddit and Twitter to reward people who create or share high-quality content. The supply of Dogecoin is unlimited, with an annual inflation of 5 billion DOGE, accounting for about 13% of its circulating supply. According to Nasdaq, its inflation rate is estimated to decrease to 2.4% by 2040, similar to the current inflation rate of the US dollar, and will continue to decrease over time.
4. Bonk (BONK)
Bonk (BONK) is a dog-themed meme coin based on Solana, launched in December 2022, aimed at supporting and revitalizing the struggling Solana community. Similar to DOGE and SHIB, BONK positions itself as a social token focused on community engagement through BonkDAO. The price of Bonk has risen due to the push from internet memes and culture, part of a broader trend of meme-based cryptocurrencies.
5. Shiba Inu (SHIB)
Shiba Inu (SHIB) is a meme-based cryptocurrency created in 2020 by an anonymous figure named Ryoshi. It is inspired by Dogecoin and uses the Japanese Shiba Inu as its motif, positioning itself as the “Dogecoin killer.” SHIB is an ERC-20 token issued on the Ethereum blockchain, with a supply of 1 quadrillion tokens, 50% of which are locked on the Uniswap DEX platform for liquidity creation, and the remaining 50% gifted to Ethereum founder Vitalik Buterin. The significant increase in the token burn rate has contributed to the substantial increase in the value and market position of SHIB, especially in the bull market.
In the end, there are many other coins that have not been mentioned here, such as specific opportunities and decisions, which often cannot be summarized in one article.