Dogecoin's Fate in Meme-Coin Market: One-Dollar Dream or Investors' Nightmare?
Summary:
This article discusses the potential of Dogecoin (DOGE) to resist fading into oblivion, despite the burgeoning market of meme-based cryptocurrencies. While DOGE experienced a modest gain recently, it pales compared to other major meme-based cryptocurrencies. Experts remain skeptical about the possibility of DOGE hitting a one-dollar mark within this cycle. The launch of other memecoins shouldn't undermine investor sentiment towards DOGE, and influential figures like Elon Musk might boost its popularity. However, sharp spikes in DOGE's value could lead to significant sell-offs by long-term holders. The future of DOGE depends on numerous small-scale investors who are presently sitting on paper deficits.
In light of a burgeoning market of meme-based cryptocurrencies, the robust community surrounding Dogecoin (DOGE) may help this particular crypto coin resist fading into oblivion. However, market analysts remain dubious regarding investors' expectations for it to hit a one-dollar mark within this cycle. Achieving such a value would translate to a 36% surge over Dogecoin's all-time high in May 2021, which stood at $0.73, and a 525% leap over its current $0.16 value.
Over the past week, the CoinMarketCap data revealed a modest 2.58% gain for DOGE. This improvement is considerably dwarfed when one considers the growth exhibited by other major meme-based cryptocurrencies during the same period - PEPE increased by 43%, Shiba Inu rocketed by 17.42%, and Dogwifhat ascended by 14.43%.
A crypto trader known as Rekt Capital voiced out that “DOGE is one of the most cyclical altcoins in existence", and argued that the launch of other memecoins shouldn’t undermine investor sentiment towards the leading meme coin.
However, Pav Hundal, a leading analyst at Australian crypto exchange, Swyftx, had a less optimistic view and expressed that while Dogecoin commands a substantial user base, any steep inflation in its value is likely to spur a significant sell-out by long-standing holders.
He comments that the fate of DOGE will hinge on the verdicts by a multitude of small-scale investors who acquired stakes in the meme-coin in 2021. These investors presently sit on paper deficits; implying any hike towards a dollar mark will likely be uncertain due to the potential sell-offs.
Hundal additionally noted a 56% downturn in open Interest (OI), an indicator of outstanding or unsettled DOGE futures contracts, across crypto exchanges since April. Though there has been a drop in derivative activities for DOGE, Rekt Capital maintains that according to DOGE’s cyclic chart, it is likely to reach a dollar mark in this cycle.
Rekt Capital further points out that DOGE, enriched with "historical heritage", has experienced somewhat predictable periods which traders often underscore on social media. Influential figures like billionaire Elon Musk, who is known for displaying his interest in this cryptocurrency, could potentially boost its value,
However, Musk recently opined that his curiosity towards cryptocurrency has somewhat weakened. He even faced a lawsuit, worth $258 billion, from investors accusing him of fostering a pyramid scheme to amplify the popularity of Dogecoin earlier in April 2023. As a result, whether the community's rallying support and potential social media pushes can lead Dogecoin to the desired dollar mark continues to be a matter of speculation.
Published At
4/24/2024 7:18:47 AM
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