Dogecoin’s value took a modest leap to $0.062 this week, following legal documents that diminished concerns of FTX potentially offloading DOGE assets valued at $42 million. Insights from on-chain data suggest the faith demonstrated by enduring investors might spur further appreciation in Dogecoin’s value in the imminent future.
Last week, there were tremors in Dogecoin’s price amidst speculations that the embattled FTX Exchange intended to unload DOGE tokens approximated at $42 million to satisfy its creditors amidst bankruptcy procedures.
Yet, recent legal documents unveiled on Wednesday excluded DOGE from FTX’s top ten crypto holdings in its whopping $3.4 billion portfolio. Subsequent to this, DOGE’s value nudged from $0.060 to $0.062. Is a stronger rally in sight?
Dogecoin’s Stalwarts Eyeing More Upswings
Despite the bearish gusts sweeping the crypto realm that dragged down several high-ranked cryptos such as Litecoin (LTC), Sandbox (SAND), and Apecoin (APE) to unprecedented lows, Dogecoin price has sustained above the $0.060 mark. An analysis of on-chain metrics indicates the resilience of committed DOGE investors as crucial.
Data sourced from IntoTheBlock reveals that from August 14 to September 15, long-standing Holder addresses expanded their reserves by 1.2 billion DOGE, while transient traders liquidated about 1.56 billion coins.
In the cryptocurrency lexicon, addresses retaining coins for a year or more without movement are labeled “Long-term Holders.” The aforementioned metrics underline the commitment of Dogecoin’s dedicated investors, signifying not just retention but also accumulation.
Such bullish indications, especially amidst market volatility, could inspire new entrants and potential investors to have a favourable view of Dogecoin’s future price trajectory.
Should this inference resonate, Dogecoin might witness notable upticks once the general sentiment in the meme-crypto sphere turns positive.
Dogecoin’s Price Dynamics Leaning Bullish
Post the revelation that DOGE wasn’t among FTX’s liquidation candidates, Dogecoin advocates have found renewed vigor. The prevalent Relative Strength Index (RSI) patterns applied on notable exchanges like Gate.io lend weight to this assertion.
Recent trends, specifically since September 11, depict the DOGE daily RSI elevating, reaching 40.45 on September 15. The RSI offers insights into the momentum of current price movements. As DOGE’s RSI gravitates toward the lower 40s, it indicates the shift from oversold territories to equilibrium.
In essence, with unwavering support from long-standing investors, the price trajectory for Dogecoin seems poised for a bullish phase in the upcoming timeframe.
From an on-chain vantage point, Dogecoin appears ready for further growth, especially if the broader crypto atmosphere turns favourable. Nonetheless, the resistance around $0.07 might pose challenges.
The Global In/Out of the Money Around Price (GIOM) metric, which portrays the average purchase price of current DOGE holders, echoes this sentiment. Turns out, 377,570 entities acquired 35 billion DOGE at an average of $0.068. Early profit-taking by these entities might induce a price adjustment.
However, if this resistance crumbles, the path could be cleared for DOGE to surge towards $0.08. This is also confirmed by DOGE price prediction engines. Conversely, a dip beneath $0.055 might be met with solid support from the 466,770 entities that procured 6.45 billion DOGE at an upper limit of $0.060.
In the rare event of this support buckling, Dogecoin might retreat to $0.055.
Origins of Dogecoin: From Meme to Mainstream
Dogecoin, often symbolized as DOGE, began its journey in a rather unconventional manner compared to other cryptocurrencies. Launched in December 2013 by Billy Markus and Jackson Palmer, the digital coin started off as a playful response to the burgeoning crypto frenzy, specifically aiming to satirize the multitude of altcoins flooding the market. The creators named it after the popular “Doge” meme, which features a Shiba Inu dog and its characteristic broken English captions. Contrary to expectations, the lighthearted nature of Dogecoin resonated with a vast audience, transforming it from a mere joke into a widely recognized crypto asset. The community-driven approach, coupled with philanthropic initiatives funded by Dogecoin, helped cultivate a strong, supportive, and passionate user base that continues to champion the coin today. And if you now fancy to join the tribe, you can dive into how to buy DOGE instructions here.
The Meme Coin Phenomenon: Beyond Dogecoin
Following Dogecoin’s unexpected success, the crypto landscape saw the emergence of numerous other meme coins hoping to replicate its trajectory. Among the notable names is Shiba Inu (SHIB), often dubbed the “Dogecoin killer,” which surged in popularity due to its massive supply and fractional valuation. Another coin, SafeMoon, garnered attention for its unique tokenomics that rewards long-term holders. Elon Doge Token (EDOGE) and Floki Inu are other entrants that capitalized on the popularity of Elon Musk’s tweets related to the crypto world. While these meme coins often start as internet jokes or trends, their growing communities and decentralized finance (DeFi) applications, such as staking and liquidity pools, have given them a semblance of utility and value in the ever-evolving cryptocurrency ecosystem. However, potential investors should approach with caution, as the volatility and unpredictability associated with meme coins can be significantly higher than traditional crypto assets.