SUNDOG up by +9% after Ty Dolla’s whale purchase – More gains for memecoin coming?

• SUNDOG recorded a 9% surge, despite a broader memecoin market decline.
• Celebrity endorsements sparked mixed reactions, highlighting concerns over memecoin longevity and relevance

The memecoin market has seen a whirlwind of activity recently, registering a notable hike of over 9% on 6 October— Its highest surge for the month.

However, at the time of writing, the total market capitalization for memecoins stood at “just” $52.7 billion, reflecting a slight decline of 1.7% in the last 24 hours.

SUNDOG becomes the talk of the town

Amidst this backdrop, several dog-themed memecoins have been making headlines, with Sundog [SUNDOG] capturing significant attention.

Remarkably, SUNDOG saw a 9% hike in its value over the last 24 hours, despite the downtrend in the memecoin market, as per CoinGecko.

This surge was further highlighted by Ty Dolla’s recent purchase of half a million SUNDOG tokens. This pointed to strong investor interest, even in turbulent market conditions.

Source: TyDolla$ign/X

For those unfamiliar, SUNDOG is a memecoin that was launched on the TRON network.

Community reactions

In light of this significant whale activity, Justin Sun, the founder of TRON, shared his thoughts on X, highlighting the growing interest in this emerging asset. 

He replied to Ty Dolla and said,

“Welcome to Tron family!” 

However, the crypto community appeared taken aback by this news, as noted by X user – Nate Rivers. He added,

“Weird way to promote imo @justinsuntron. These guys have no motion these days.” 

Another X user – Eric Cryptoman – said, 

Source: Eric Cryptoman/X

However, not everyone echoed this sentiment, as Ray Trapani pointed out, 

“More celebs should be doing this instead of their own coins. Sundog is a blue chip, this should get nothing but love. Hopefully even 1% of his fans see this and try to explore crypto.”

This highlights the trend of celebrity-endorsed memecoins, which quickly gain hype upon launch but often fizzle out within hours. In many ways, such a trend represents a classic “pump-and-dump” scheme.

Celebrity memecoins – A risky gamble?

Reflecting this concern, Vitalik Buterin, co-founder of Ethereum, had previously voiced his dissatisfaction with the proliferation of these celebrity-backed tokens.

He emphasized the pressing need for more substantive and relevant projects within the cryptocurrency ecosystem to boost genuine innovation, rather than fleeting trends.

He asserted,

“I’m feeling quite unhappy about with ‘this cycle’s celebrity experimentation’ so far. ‘Financialization as a means toward an end’, I can respect if the end is worthy (healthcare, open source software, art, etc).”

SUNDOG’s price analysis

AMBCrypto’s analysis of TradingView revealed that the token’s trading activity was underlined by its Relative Strength Index (RSI). At the time of writing, the same was positioned around the 46 mark— Indicating bearish sentiment as it sat below the neutral level.

Source: CoinMarketCap

However, despite this technical analysis, community sentiment, as reported by CoinMarketCap, showed a more optimistic outlook. In this particular case, bullish sentiments seemed to outweigh the bearish ones.

Source: CoinMarketCap

This divergence suggests that while technical indicators may point to caution, the overall community sentiment remains hopeful about SUNDOG’s potential in the memecoin market.