Elon Musk’s unwavering support for Dogecoin (DOGE) has played a crucial role in keeping the meme coin among the top ten most valuable digital assets.
On-chain data reveals that some DOGE whales have been selling off their holdings to short-term holders, who are likely to trade them for new and shiny meme coins.
Thanks to Elon Musk and his family of unicorn companies, Dogecoin (DOGE) remains the leading meme coin in terms of market capitalization. With a fully diluted valuation of around $28 billion, this large-cap meme coin now boasts over 7.2 million on-chain holders.
As a result, investors are unlikely to face any issues finding liquidity for Dogecoin on various web3 protocols, including centralized crypto exchanges. Additionally, Dogecoin has a total liquidity of more than $24 million when compared to other top digital assets such as Ethereum, BNB, and USDT.
Dogecoin’s On-chain Analysis
Crypto News Flash recently reported that the rising popularity of new meme coins, combined with Elon Musk’s silence on the matter, is gradually causing investors to turn away from Dogecoin. Furthermore, the emergence of the Toncoin (TON) network and its tap-to-earn meme coin on the Telegram social platform has posed a threat to Dogecoin’s position among the top ten most valuable digital assets.
According to on-chain data analysis provided by Santiment, Dogecoin addresses holding between 10 million and 100 million units have sold off over 300 million DOGE units, equivalent to approximately $55 million. Interestingly, short-term DOGE holders now account for 13 percent of the total supply, which increases the risk of potential sell-offs.
On the Flipside
Investors in Dogecoin are also preparing for the upcoming Bitcoin halving, which typically triggers the parabolic phase of the macro bull cycle. Notably, Dogecoin is the second-largest digital asset secured by the proof-of-work (PoW) consensus after Bitcoin.
As a result, speculation surrounding dog-themed meme coins has skyrocketed in recent times, surpassing altcoins with real-world utility. As previously reported by Crypto News Flash, Dogecoin is on the verge of surpassing Ripple Labs-backed XRP.
Santiment’s insight noted, “Dogecoin’s notable presence in the top 10 isn’t just about its adorable mascot but also its significant price analysis predicting a 45% weekly jump. The excitement over a potential ‘dog coin season’ and Binance listing other meme tokens like FLOKI leveraged Dogecoin’s charm, spotlighting the power of community-driven hype in crypto valuation.”
DOGE Price Action and Mid-term Expectations
After an impressive rally during the recent meme coin season, Dogecoin has encountered significant resistance around 20 cents. According to the latest market data, DOGE’s price has increased by around 15 percent, trading at approximately $0.19 on Thursday, April 11, 2024.
From a technical standpoint, DOGE’s price is aiming to retest its all-time high following a bullish breakout earlier this year. Furthermore, DOGE’s price against Bitcoin is currently attempting to break through the resistance of the macro falling logarithmic trendline.
If DOGE can consistently close above 22 cents in the coming weeks, it will propel the price to a fresh multi-year high, marking the beginning of a new era for dog-themed meme coins.
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