Dogecoin
Why is Dogecoin no longer a top 10 coin?
Posted:
| Last updated: February 14th, 2024
Journalist
- Chainlink flipped Dogecoin’s market cap as the former continued to do well.
- DOGE’s price might fall to $0.077 since capital inflow decreased.
Dogecoin’s [DOGE] position as the 10th most valuable cryptocurrency has been taken, AMBCrypto discovered. According to CoinMarketCap, DOGE was now ranked 11th on the market cap standings.
At press time, the coin’s market cap was $11.46 billion.
Chainlink [LINK], on the other hand, was the project that took its place with a market cap of $11.97 billion.
Dogecoin’s fall could be linked to many things. But the major one was its price action. At press time, DOGE’s price was $0.080, representing a 12.78% decrease since the new year began.
LINK, however, has been one of the best-performing altcoins. On a Year-To-Date (YTD) basis, LINK’s price has increased by 30.07% while changing hands at $20.20.
As you probably know, market cap is a product of the price and circulating supply. As of this writing, LINK’s circulating supply was 58.01 million, while DOGE was 143.04 billion.
But if the price of both cryptocurrencies and those engaged in transactions is compared, one can conclude that Chainlink takes the cake.
Low trading activity brings DOGE to its knees
Another reason Dogecoin lost the number 10 position could be connected to some happenings on-chain. Recently, AMBCrypto reported how the network had a high influx of users and active wallets.
But the latest data from Santiment showed that that has changed.
One of the metrics propelling the fall was the transaction volume. On the 9th of February, Dogecoin’s transaction volume was over a billion.
However, at the time of writing, the number had decreased to 115.97 million. This was almost a 10x decrease from what it was a few days ago.
Like the volume, whales’ transactions within the $100,000 to $1 million range had significantly decreased. A situation like this implies that fewer participants were buying and selling DOGE.
It also suggests that the broader market might no longer be confident in the token’s potential in the short term.
Source: Santiment
No relief in sight
If care is not taken, DOGE might fall from 11th place. However, a price increase could prevent that from happening.
At the same time, it could be difficult to take its previous position back from Chainlink, which the market seemed to have a lot of interest in.
From a technical point of view, DOGE’s price might keep falling. One of the reasons for this project was the Money Flow Index (MFI).
At press time, the MFI was 52.82, indicating a significant drop in capital flow. Should the MFI reading continue to fall, DOGE’s price might decline to $0.077, which was the next point of interest.
Read Dogecoin’s [DOGE] Price Prediction 2024-2025
On the other hand, if DOGE breaks through the $0.083 resistance, the price might find its way up to $0.090.
However, signals from the Relative Strength Index (RSI) showed that the move was unlikely as buying momentum decreased.
Source: TradingView
