- DOGE and SHIB’s social dominance declined last week.
- Dogecoin might again begin a rally if it goes above a key resistance.
Memecoins at large have reached a milestone in terms of market capitalization, despite being criticized for having no utility. Coins, which are associated with hype and market trends, now boast a market cap of $140 billion.
Therefore, AMBCrypto investigated to find out the performance of top memecoins to find what’s causing this surge.
A look at the memecoins
While talking about memes, it’s inevitable that Dogecoin [DOGE] and Shiba Inu [SHIB] don’t come up. The world’s largest memecoin, DOGE, showcased impeccable performance last month with a whopping 126% price hike.
This massive hike allowed DOGE to earn the 7th spot on the list of cryptos by market capitalization.
Shiba Inu’s price action also remained bullish, as the memecoin’s price surged by over 65% last month, making it the 13th largest crypto. However, despite these huge numbers, market sentiment around both memecoins changed.
Santiment’s data revealed that DOGE and SHIB witnessed a decline in their social dominance, reflecting a dip in their popularity. On top of that, their weighted sentiment also plummeted significantly — a sign of rising bearish sentiment.
Source: Santiment
Apart from the massive price rise of the top 2 memecoins, Solana [SOL] also played a role in the rise of memecoin dominance.
The blockchain has witnessed an influx of multiple meme-based coins of late, out of which several captured considerable market caps. For instance, Dogewifhat [WIF] and Bonk [BONK].
In fact, it was interesting to note that while DOGE and SHIB consolidated, BONK’s price surged by 5% in the last 24 hours.
As the memecoin sector gains traction, new contenders have arrived, which can challenge the likes of Solana. Coinbase’s BASE has joined the memecoin frenzy as it launched multiple meme-based coins in the recent past.
BRETT, being the top BASE memecoin, registered a massive 128% price hike in the past 30 days.
What to expect from DOGE and SHIB?
Since the top two meme-based coins witnessed a decline in volatility, AMBCrypto assessed their daily charts to find what to excerpt from them. Beginning with DOGE, a bullish ascending triangle pattern formed on the memecoin’s chart.
At press time, it was testing the resistance of the pattern, and a breakout could trigger another bull rally. The possibility of that happening was high as the Chaikin Money Flow (CMF) registered an uptick—a sign of rising buying pressure.
Source: TradingView
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Unlike DOGE, buying pressure in SHIB was dropping, which was evident from the decline in the Relative Strength Index (RSI).
Nonetheless, the MA cross indicated that the 9-day MA was above the 21-day MA, which gives bulls a chance to continue to dominate the market.
Source: TradingView
