Dogecoin, the internet’s favorite meme cryptocurrency, has experienced a 6.5% price dip in the last 24 hours. This drop has left DOGE at $0.07726, spelling out red in a wider crypto market that continues to grapple with profit-taking and loss-cutting in the aftermath of recent significant events such as Bitcoin ETF approvals. The decline extends further back, showing an 18% reduction over the past month and a 13.5% fall in the last 12 months, painting a picture of disappointment for the beloved “meme” in the crypto space.
Despite this downward trend, there’s a growing argument that DOGE might have been oversold, which could mean an upward correction is due. The digital asset signals that it still has space to fall before reaching conditions of being grossly oversold. The 30-day average has trended down but still stays significantly above the 200-day average, indicating a potential for further declines.
Factors Influencing Dogecoin’s Future
The Bear and the Bull
Talk of whether the market climate is turning bearish or simply enduring a minor setback is rife. If a bullish trend returns later this year, it could spark a more profound recovery for Dogecoin. Especially noteworthy is the market’s potential to turn bullish later this month, particularly as traders anticipate the next Bitcoin halving. Conversely, sustained bearish pressures could mean DOGE takes longer to recoup losses.
X Marks a Spot
Another factor that could kickstart Dogecoin’s resurgence is something more explicitly linked to market activity—Twitter, a key platform for crypto discussions. The social media giant could usher in a wave of cryptocurrency integration, with a recent blog post hinting at peer-to-peer payment services coming to its platform this year. If Dogecoin gets listed or gains recognition in this context, it could see a significant uptick in its value, possibly assisting in a rebound to $0.10 by spring.
Exploring Alternative Meme Coins
The crypto landscape is forever growing, with new meme coins creeping into the scene, offering fresh investment avenues. In light of DOGE’s current woes, it may be a prudent move for traders to divert their attention to high-potential, small-cap meme tokens. One such contender is Sponge (SPONGE), an ERC-20 token introduced in April 2023. Upon listing, Sponge rallied significantly, indicating a potential contender for a substantial rally post-clearances.
