- Dogecoin’s price rallies materially. Elon Musk plays a role.
- Other memecoins fail to see similar growth, traders turn pessimistic.
Despite the market’s instability and regulatory scrutiny faced by altcoins, Dogecoin [DOGE] was able to maintain a rally for the past few weeks. Traders and investors of this meme-based cryptocurrency have persisted in accumulating significant amounts of DOGE despite the unstable market conditions.
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Who let the DOGE out?
According to Santiment’s data, DOGE’s price appreciated by 25% in the past two weeks. There was a surge in the number of traders showing interest in DOGE, which resulted in this spike in price.
Due to this recent rally, several DOGE holders have started to get profitable as showcased by the increasing Market Value to Realized Value (MVRV) ratio.
Source: Santiment
He Musk be stopped
One of the reasons for the surge in interest in DOGE could be attributed to Elon Musk’s recent behavior with regard to X.com, formerly known as Twitter. The rebranding and renaming of the website led many speculators to believe that DOGE may serve a larger purpose for the website in the future.
Elon Musk did little to curb the speculation around DOGE and X. Instead, he further implied that the memecoin will have a pivotal role in the functioning of the website.
This was showcased by Musk’s recent location on his profile, which features both the letters, “X” and “D”. The latter could be presumed to be stand symbolizing DOGE. Furthermore, Elon’s behavior can lead to more market speculation and may impact DOGE’s price in the future.
Source: X
What’s cooking on the social front?
Due to the aforementioned reasons, activity on DOGE’s social front shot up significantly. According to LunarCrush’s data, the number of social mentions for DOGE grew by 810% over the last week. Similarly, the number of social engagements for DOGE surged by 819% during the same period.
Moreover, the weighted sentiment around DOGE also started to move up. This indicated that the number of negative comments made against DOGE on social networks had started to decline.
Source: Santiment
At press time, Dogecoin was trading at $0.07856. After testing the $0.063 support level on 13 July, DOGE’s price showcased multiple high highs and high lows, indicating a bullish trend. However, the price observed a correction after testing the $0.083 resistance levels. This decline in price, however, wasn’t significant enough to establish a trend.
Additionally, the Relative Strength Index (RSI) also suggested a positive outlook for DOGE. At press time, it was at 58.65, implying that the momentum for DOGE was with the buyers. The Chaikin Money Flow (CMF) was also relatively high, suggesting that money flow favored the bulls at the time of writing.
Source: Trading View
Memecoin see, memecoin do?
In the past, DOGE’s rally has preceded the surge in the price of other memecoins, such as SHIBA and FLOKI. Due to the recent spike in DOGE prices, many have started to speculate the possibility of an uptick in interest in the memecoin market.
Over the last few weeks, the price of SHIB has soared. The price of SHIB went from $0.000007 to $0.000008. However, the same couldn’t be said about the other memecoins, especially, FLOKI and PEPE. Both of the tokens witnesses a significant depreciation in price during this period.
The dominance of Shiba Inu in this sector could be attributed to its growing community and its emerging metaverse. Shiba Inu’s constant focus on developing its ecosystem in both the DeFi and NFT sector can play an important role in providing the meme coin an edge against its competitors.
Source: Santiment
Low cloud, High doubt
However, on a macro level, the price and activity around the memecoins depend largely on each memecoin’s performance on the social front and the hype surrounding each token.
In this sector as well, SHIBA took the lead and outperformed both FLOKI and PEPE by a huge margin. According to Santiment’s data, FLOKI and PEPE were not able to have the same presence on the social front. Additionally, these coins exhibited lesser social dominance than SHIBA.
Source: Santiment
Due to this disparity, there was a massive difference between the market caps of each of the memecoins. DOGE topped the list, boasting a market cap of $11.05 billion.
Followed by SHIBA which had a market cap of $4.61 billion. PEPE and FLOKI failed to cross the billion-dollar market cap mark and currently had a market cap of $488 million and $207 million respectively.
Source: CoinMarketCap
Traders stay bearish
Despite the recent interest showcased by traders in DOGE and other memecoins, traders were extremely skeptical about the current surge in the price of memecoins.
Realistic or not, here’s PEPE’s market cap in BTC’s terms
Coinglass’ data indicated that the majority of the trades that were being made against DOGE, SHIB, FLOKI, and PEPE were shorts.
Source: coinglass
