After showing resilience and outperforming numerous competitors in the cryptocurrency market, Dogecoin (DOGE) is currently experiencing significant downward pressure, with a drop of 21% today. After plunging to $0.11 during a market-wide downturn on October 10, DOGE managed to settle at $0.1932 by the end of the day.
The rapid fluctuations in DOGE’s price can be attributed to a staggering increase in its daily trading volume, which skyrocketed by 300% to reach $12 billion. Although the volatility poses challenges, many analysts continue to maintain a bullish outlook, noting that DOGE’s overall trend remains intact as it consistently forms higher lows.
Market movements by larger investors, or “whales,” coupled with institutional actions, have further fueled positive sentiment around DOGE. In recent days, millions of DOGE tokens have been withdrawn from exchanges, which has alleviated selling pressure and indicated growing confidence among holders. Recent data reveals that approximately $149 million worth of DOGE has been transferred from trading platforms to private wallets in the past 24 hours. This substantial withdrawal not only reduces the number of tokens available for immediate trading but also reflects an increasing commitment from major market players. With waning interest in competing meme coins like dogwifhat (WIF), these whales seem to be opting for longer-term positions in DOGE.
On another front, institutional interest in DOGE remains robust. The upcoming launch of the 21Shares DOGE ETF has sparked attention, as it recently secured a spot on the DTCC’s pre-launch list. The dual factors of diminishing liquidity on exchanges and increasing institutional interest are creating an environment ripe for potential price surges, should demand materialize.
Currently holding at $0.1940, DOGE has regained much of its losses from October 10. Traders express optimism for continued growth, as evident from a long/short ratio of 3.3. The focus now shifts to the crucial resistance level at $0.24, which coincides with DOGE’s 50-day Simple Moving Average (SMA). Clearing this level could reinforce the recent pattern of higher lows and indicate sustained buying interest, possibly setting the stage for DOGE to target further resistance zones around $0.30. Should it achieve this, the leading meme coin may be poised for dramatic gains, potentially even reaching the elusive $1 mark as it echoes its remarkable run from 2021.
While DOGE’s potential remains vivid, analysts are increasingly highlighting alternatives in the meme coin space. Among these is Maxi Doge (MAXI), a new meme coin currently in presale, which has begun to garner significant attention. Industry expert Alessandro De Crypto notes that MAXI has not yet undergone its first major price spike, distinguishing it from DOGE, which boasts a market cap of $29 billion. As a micro-cap meme coin, MAXI is entering a market potentially primed for bullish movements.
MAXI is designed not merely as a replica of DOGE but rather as a community-oriented token that integrates utility, targeting traders with various competitive opportunities. Holders can partake in trading competitions and earn rewards based on their performance, enhancing the long-term appeal of the token. The presale has significantly progressed, amassing over $3.5 million, with the last ten days alone contributing an impressive $1 million. Participants in the presale can secure MAXI at a discounted rate and benefit from an attractive 85% staking annual percentage yield (APY).
With DOGE appearing on the verge of a major upward movement, the looming prospect of a new meme coin season may provide an ideal environment for Maxi Doge to flourish, urging potential investors to act swiftly to maximize their returns.
