Dogecoin Struggles as Meme Coin Frenzy Fizzles Out: Will DOGE Price Drop 99%?
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The price of Dogecoin has fallen by 4% in the past 24 hours, dropping to $0.1211 after the FOMC decided not to reduce rates at its meeting yesterday.
This drop is in line with the market’s fall of 3%, with DOGE also down by 3% in a week and 1.5% in a month.
Despite these falls, the meme coin holds on to a 57% gain in a year, although this is considerably lower than the annual gains for other major tokens.
And while it’s arguable that DOGE’s underperformance puts it in a position to rebound strongly, it’s also arguable that it may be suffering from a long-term decline.
Dogecoin Struggles as Meme Coin Frenzy Fizzles Out: Will DOGE Price Drop 99%?
As with many other tokens today, DOGE can at least point to having an oversold position that should normally result in a rebound.
Its relative strength index (purple) fell below 30 this morning, and has begun to rise once again.
DOGE’s 30-day average (orange) has also descended well below its 200-day (blue), reaching a low position that often turns into a rally.
Helping with optimism are the coin’s support (green) and resistance (red) levels, which are converging towards each other.
However, pessimists may draw attention to Dogecoin’s low volume, which stands at $700 million today.
This contrasts unfavorably with the levels – between $4 billion and $7 billion – it recorded in late March, when it reached its high for 2024.
It’s therefore entirely plausible to suggest that traders, including whales, have lost interest in Dogecoin, with other alts and meme coins overshadowing it.
Over the years, $DOGE (Dogecoin)'s Log Breakouts (displayed) have ALWAYS led into massive upsides and prices of, have done so again with a break currently holding!
Now, based on the previous 2 breakouts, each of these runs have consecutively gotten larger, and if we are to see… pic.twitter.com/AXljvJqtW0
— JAVON⚡️MARKS (@JavonTM1) July 31, 2024
Yet some analysts have begun suggesting that Dogecoin is actually at the start of a new bull cycle, with past patterns indicating future gains.
Of course, past performance is no guarantee of the future, yet there’s no doubt that the purely technical case for DOGE is pretty strong.
As for its fundamentals, these remain very weak, with the meme token continuing to rely almost exclusively on the distant possibility that X introduces digital payments at some point.
The social network did suggest in January that it would roll out such payments this year, but haven’t really heard an update in months.
And there’s no real indication that, even if digital payments do arrive, these will involve crypto, let alone Dogecoin.
For this reason, Dogecoin could continue to underperform for the foreseeable future.
It may return to $0.15 by Q4, before regaining $0.2 by 2025.
Newer Meme Coins Have More Potential
Because Dogecoin doesn’t look like it’s up to much, many traders may prefer to investigate newer alternatives.
This could include presale tokens, which can often surge once they list, particularly if they’ve had a big sale.
One token likely to do this is Base Dawgz (DAWGZ), a multi-chain cryptocurrency that has already raised over $2.7 million in its ongoing sale.
DAWGZ is one of the first multi-chain meme coins in the market, giving it an accessibility and reach that could help boost its price over time.
Dawgz has passed 5,000 followers!
Maybe all the people who left crypto last week are seeing the light now 🤔 pic.twitter.com/iINbZ2Wz1W
— Base Dawgz (@BaseDawgz) July 18, 2024
It will run on Ethereum, Base, Solana, Avalanche, and BNB Chain, while more chains may follow in the future.
Because it will be multi-chain, it could attract much greater adoption and usage than it would have as a single-chain token.
Also helping its case is its use of the ever-popular Shiba Inu meme, albeit with an edgier base-jumping, thrill-seeking twist.
The coin now boasts over 5,000 followers for its X account, which is impressive for a coin that hasn’t even launched.
As a token, DAWGZ will have a max supply of 6.453 billion DAWGZ, with 20% of this going to its sale and another 20% going to staking.
Staking will provide further incentive to hold the token, helping to support its long-term price.
Newcomers can get involved in the coin’s sale by going to the official Base Dawgz website, where 1 DAWGZ currently costs $0.007061.
They can buy it using any of the native tokens of the chains it supports, with its price likely to balloon once it goes live.
