Dogecoin (DOGE): The Only Appreciating Token From Top-50 Within Past 24 Hours
Despite the critical perception of meme coins by many crypto investors, Dogecoin (DOGE) has proven to be the only cryptocurrency that demonstrated a positive price dynamic within the past 24 hours.
Causes of Crypto Market Decline
After Bitcoin has broken the horizontal correction channel upwards, many crypto investors suggested it to be the optimal signal for opening long positions in anticipation of BTC appreciation and a new cycle of growth for the entire crypto market. However, the prevalence of macroeconomic and global sociopolitical risks, including Federal Reserve’s expected increase of the basic interest rate and a new phase of the Russo-Ukrainian War, create significant problems for the sustainable economic growth and higher activity being demonstrated by crypto investors. According to the On-Chain College, the long positions with the equivalent of $30 million were liquidated within the short period of 30 minutes, thus creating additional downward pressure on BTC and crypto market.
As such rapid correction appeared to be unexpected for many investors, it caused panic and hesitation regarding the reasonability of opening long crypto positions. As a result, almost all cryptocurrencies demonstrated the rapid price decline similar or even higher than that observed in the BTC market. According to CoinMarketCap, the current depreciation statistics is as follows: Bitcoin has lost 4.01%; Ethereum – 6.34%; Solana – 10.16%; and Avalanche – 9.99%. The only major exception from Top-50 cryptocurrencies is Dogecoin (DOGE) that has appreciated within the past 24 hours.
Dogecoin’s Exceptional Performance
Dogecoin has appreciated by more than 1%, and even despite the negative pressure of the entire crypto market within the past several hours, it still remains a profitable investment. The most atypical characteristic of such price changes is the radically different price change directions of meme coins. Thus, Shiba Inu has depreciated by more than 4% within the last 24 hours, indicating that other cryptocurrencies more seriously depend on the BTC price dynamics as compared with DOGE. The following factors could largely contribute to DOGE’s appreciation despite the major problems present in the crypto market. The first one is its close historical connection with Elon Musk known for supporting and promoting DOGE. Therefore, Musk’s plans regarding investments in Twitter caused the proportional appreciation of DOGE due to the expected higher demand for it in the future. The second one is the lower growth of DOGE as compared with other cryptocurrencies during the past several weeks, resulting in the situation when it could be potentially undervalued based on the evaluation of the major fundamental factors. The third one is the higher activity of short- rather than long-term investors, considering the low predictability of the crypto market conditions. Therefore, many intraday traders were also involved in DOGE purchasing transactions.
Although the downward pressure increases within the past hours, DOGE still remains profitable, confirming its high independence from BTC, ETH, and other major crypto projects.
DOGE’s Perspectives for Further Growth
DOGE is one of the riskiest cryptocurrencies characterized by high volatility. However, the impact of the following factors may be crucial for realistically predicting potential price changes in the following months: the demand for and perception of meme coins by the crypto community; the general dynamics of the crypto market; Elon Musk’s support of DOGE; and additional innovations introduced by Dogecoin’s developers. The high market uncertainty may also lead to the more intense competition between Dogecoin and Shiba Inu; thus, the direction of their price changes may not necessarily coincide. As DOGE does not have the maximum supply, most investors may consider it as a reasonable short-term investment. Technical analysis can inform better-supported investment decisions for the following weeks.
DOGE has a strong support level at the price of $0.11 that may prevent it from losing its positions among Top-20 cryptocurrencies. At the same time, the two resistance levels at $0.17 and $0.20 may create serious barriers for DOGE’s appreciation. At the moment, the most likely scenario is the decline in DOGE’s price within the following weeks. However, it may still present a considerable interest for crypto investors during periods of the major cryptocurrencies’ instability.
