Safemoon vs Dogecoin – How do they perform when Bitcoin rises and falls?
Safemoon vs Dogecoin is an interesting debate. Especially in the larger context of the altcoin market. Safemoon’s [SFM] and Dogecoin’s [DOGE] price action followed Bitcoin’s [BTC] cue in April. However, DOGE had an early start after Elon Musk swapped it for Twitter’s logo for a few days in early April. Twitter’s action saw DOGE swing from $0.07600 to $0.10500 on April 3.
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SFM didn’t fall far behind in traction, but its past and scam allegations still outweigh its ongoing price action. It made a new swing lows at press time, but it can’t hinder it from a likely rebound.
Given that both are memecoins and can easily go viral and offer profits in the long run – Which one performed better in April, and how much can they weather market volatility in the future?
DOGE vs. SAFEMOON – Which one is safer in market volatility?
Assets react differently to market uncertainty. For DOGE and SAFEMOON, the reaction was varying, especially during BTC’s price swings in April 2023.
Notably, BTC consolidated narrowly near $28k in late March but broke above the range on 11 April. The upswing saw BTC hit $31k.
Over the same period, DOGE’s rally after Twitter’s action had cooled to around $0.08107, up from $0.10500. However, BTC’s surge prompted it to rally to $0.09500 – A 17% hike.
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The bullish sentiment also offered a safe landing for SAFEMOON bulls. They rallied from $0.0001700 to $0.0002804 – A 64% hike.
Therefore, BTC’s upswing in mid-April saw SAFEMOON as a safer bet at 64% gains compared to DOGE’s 17% over the same period.
The picture was quite different after BTC’s sharp retracement. The king coin dropped from the $31k to $26k zone on 24 April, before attempting a recovery.
Interestingly, SAFEMOON shed 21% of its value, plunging from $0.0002804 to a key bullish order block of $0.0001938 on 24 April. However, DOGE lost about 19% of its value after declining from $0.09500 to $0.07715 in the same period.
Hence, SAFEMOON took more hits during BTC’s drop than DOGE. Put differently, SAFEMOON outperformed DOGE during BTC’s upswing, but sustained more losses during the downswing.
Based on trading volume, DOGE had over $261 million compared to SFM’s (Safemoon V2) $1.2 million, at the time of writing, translating to $10.9 billion and 93.5 million market caps, respectively.
Apart from varying performance in market volatility, technical indicators were slightly different in the same period too. Now, how can these variances affect the meme coins’ long-term prospects? Let’s have a look at the daily charts for some answers.
Safemoon [SFM] Price Prediction – A rebound likely?
How much are 1,10,100 Safemoons [SFM] worth today?
On the daily chart, Safemoon’s price action was below its short and long-term trends – An extremely bearish outlook.
Additionally, the OBV (On Balance Volume) dipped sharply since April 17, and the RSI (Relative Strength Index) also hit the oversold zone, confirming increased selling pressure.
The price action inflicted a bearish breakout and formed a new swing low at press time. As such, sellers could target $0.0001416 if the recent swing low of $0.0001700 doesn’t hold.
Bulls could only gain little leverage if the $0.001938-level is flipped to support again. However, the structure will only turn bullish if SFM closes above the bearish order block at $0.0002449 (upper channel boundary).
Notably, the RSI has hovered below the 50-levels since mid-March, with a temporary upswing in mid-April before retreating to lower ranges – Confirming buying pressure eased across the same period.
Dogecoin [DOGE] Price Prediction – Can bulls inflict a pivot?Like Safemoon, DOGE had a parallel channel and price action was below the short and long-term trends (50-EMA and 100-EMA). However, DOGE hasn’t breached the March swing low of $0.06500.
Notably, the lower wicks extend into the bullish order block (cyan), showing the bulls are keen on defending the support. As such, bulls could attempt a recovery and rally towards the bearish order block at $0.09424, especially if BTC reclaims the $29k zone.
On the downside, sellers could gain more leverage if the support cracks. However, an extended drop could ease near $0.07322 or at the March swing low of $0.06500 in an extreme scenario.
Here, it is worth noting that DOGE was bullish throughout April, but only flipped to bearish on 20 April after BTC lost hold of $29k.
However, given DOGE’s modest reaction to BTC’s drop compared to SAFEMOON, the former could fall lower than the latter, as seen in April.
Read Dogecoin [DOGE] Price Prediction 2023-24
From a price action perspective, DOGE can weather market volatility betters, especially downswings correlated to BTC.
However, Safemoon could offer better returns during BTC’s upswings. Unfortunately, this isn’t a guarantee, given the existing allegations of scams surrounding Safemoon.
On the bright side, both assets could recover losses if BTC reclaims the $29k. Although they will react positively to such a development, the performance will vary.