The crypto market continues to struggle, with Bitcoin stuck below the $60,000 threshold. Even altcoins grapple with significant bearish pressure, but meme coins seem resilient.
The leading meme coin, Dogecoin, shows signals of a potential breakout rally in the coming days. However, the crypto Fear and Greed Index reveals that investor sentiment is highly bearish, and this could obscure notable moves even for top meme coins like DOGE.
$DOGE 10x Potential or too good to be true??🚀
It has been trading within this channel since February 2021, over 1,127 days, until it broke out with a massive candle in February 2024. Since then, it has been retesting the breakout.
Here’s why I believe DOGE can 10x to nearly a… pic.twitter.com/IaDIP6k2I3
— Cryptorphic (@Cryptorphic1) August 9, 2024
Given the broader market struggle, can Dogecoin rally?
Dogecoin Shows Mixed Signals with Potential Rally Ahead
Data from IntoTheBlock reveals that 68% of Dogecoin holders are still in profit, while 26% of DOGE holders bought at prices higher than its current price.
With 68% of Dogecoin wallets still in profit, the asset is showing resilience and currently ranks 4th among assets with a market cap of over $1 billion.
However, the network needs a catalyst to drive further growth. Here’s why: pic.twitter.com/zESlnm6LJ5
— IntoTheBlock (@intotheblock) August 7, 2024
In addition, 67% of Dogecoin holders have held their assets for over a year, while only 2% have held DOGE for less than a month. This data suggests that most investors are still bullish on Dogecoin despite the recent market struggles.
However, the number of new addresses has slowly declined, showing a lack of new investors in the Dogecoin ecosystem.
The number of new addresses has been slowly trending down, indicating a lack of new participants joining the network. pic.twitter.com/HncVn9qNoa
— IntoTheBlock (@intotheblock) August 7, 2024
Also, the volume of transactions has varied in the past three months, with many days of low volume. Within this period, Dogecoin witnessed a few notable spikes, though short-lived.
IntoTheBlock believes the high average holding time of 2.3 years among DOGE holders nuances the low transaction volumes and decline in new addresses. New investors might not be entering the network, but existing ones are not selling but have instead held onto their DOGE coins.
An important nuance to consider regarding the lower transaction volume is the loyalty of holders, with an average holding time of 2.3 years!
People may not be actively using the network, but they’re certainly not selling💎 pic.twitter.com/zf8ZqbxlXY
— IntoTheBlock (@intotheblock) August 7, 2024
Moreover, Dogecoin (DOGE) remains among the top 10 cryptocurrencies with a market cap exceeding $1 billion. As of August 13, Dogecoin trades at $0.104, with a 2.4% decline in the past 24 hours.
Amid intense pressure from sellers, Dogecoin encountered rejection at the $0.108 resistance level, leading to a price decline.
However, it has found support at $0.103 and is now approaching the median band of the Donchian Channel (DC). This suggests a potential retest of the $0.108 threshold.
The RSI is 42.97, indicating a neutral market position. However, the low RSI suggests there’s room for growth. So, DOGE will likely break above the $0.108 resistance level in the coming days.
If DOGE breaks above $0.108, the next long-term target is $0.17, which marks a 65% increase from current prices.
Analyst Cryptorphic shares Dogecoin Prediction
Crypto analyst Cryptorphic believes that DOGE has a 10x potential. Cryptorphic’s DOGE chart on August 9 revealed that it remained in a price channel since February 2021.
However, DOGE broke out with a massive candle in February 2024 after 1,127 days and continues to retest the breakout.
According to the analyst, Dogecoin can rally 10x, with its price rising to almost a dollar based on several factors. He noted that the breakout above the long-term accumulation channel is being tested, and DOGE printed a strong weekly Doji.
Also, Cryptorphic believes Elon Musk will likely promote Dogecoin after the US presidential election this year. He noted that the RSI indicator is still below 45, which gives plenty of room for growth.
Further, the analyst highlighted that meme coins have recently performed better than solid projects. Cryptorphic also noted that multiple indicators hint at a bull run. He believes DOGE will lead the rally in this bull run, given its position in the meme coin sector.
The analyst believes a close above $0.11 for DOGE is a trigger point for an uptrend. Overall, Dogecoin faces price volatility but could rally in the short term if the buyers sustain their charge.
Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.
