- DOGE has experienced a massive exodus from retail buyers as speculation around its fundamentals finally took its toll.
- But is this the start of something new for DOGE?
The exceptions among memecoins that have stayed in the green over the past thirty days are few. With double-digit losses, both dog and cat coins have slipped well below their psychological targets. Even the largest memecoin, Dogecoin [DOGE], hasn’t been spared.
However, as the market begins to recover from its recent meltdown, even memecoins are showing signs of life, with DOGE seeing an 11% jump from the previous day’s close.
Momentum is building. Still, DOGE has a long road ahead to recover its losses and push stakeholders into the green.
How can DOGE break out?
A glance at the daily chart reveals clear signs of profit-taking, with DOGE nearing $0.50—a level it hasn’t touched in three years. For cautious investors, cashing out at the peak was a straightforward decision.
Now, with the RSI dipping below 40, a potential rebound seems possible. A low RSI often signals that an asset is oversold, presenting a tempting opportunity to buy the dip.
However, history advises caution. While DOGE’s RSI dropping below 40 has occasionally sparked minor bullish moves, its notorious volatility keeps traders on edge.
Dogecoin has only reached an overheated state when its momentum aligned with Bitcoin hitting a peak.
Source: TradingView
So, can Bitcoin lead Dogecoin out of its two-week-long consolidation? After weeks of long red candlesticks weighing down DOGE’s daily chart, we’re finally seeing some relief with a solid double-digit jump.
This surge coincides with Bitcoin’s recovery from its recent crash, making it plausible that the momentum could carry DOGE further.
However, with memecoins like DOGE, it’s rarely that simple. While the low price tag can be tempting, retail buyers are showing signs of fatigue. The speculative nature of these coins is starting to take its toll—a trend that warrants deeper exploration.
Is it still worth the risk?
Since mid-November, retail buying and selling of DOGE has come to a standstill, as large HODLers tighten their grip on the market, as evidenced by the chart below.
Source : IntoTheBlock
The increasing control of big players with large stakes continues to shape the DOGE market, a trend we first spotlighted here at AMBCrypto.
However, an intriguing shift is unfolding: retail buying activity is fading, bringing the focus back to DOGE’s weak fundamentals. So, what we’re likely seeing with this recent surge is whales capitalizing on the ‘dip’ – not a genuine shift in market sentiment.
In the short term, this whale-driven buying could push DOGE back to the $0.40 mark. But the real test will come after that.
Read Dogecoin [DOGE] Price Prediction 2024-2025
For the memecoin to surge to $0.48–$0.50, it’s going to take more than just wishful thinking. The perfect storm of bullish Bitcoin momentum, a fresh influx of retail capital, and whales backing off from their manipulation is crucial.
If all these factors align, DOGE could very well break through. But if they don’t, investing in this memecoin might still be a risky bet.
