Tech billionaire Elon Musk’s unwavering support for Dogecoin (DOGE) has helped the meme coin maintain its position as one of the top ten most valuable digital assets.
Data from on-chain analysis shows that some large DOGE holders, known as whales, have been selling their holdings to short-term holders who are likely to trade them for new and trendy meme coins.
Despite facing competition from other meme coins, Dogecoin remains the top meme coin by market cap, thanks to Musk’s support and the popularity of his unicorn companies. The coin has a fully diluted valuation of around $28 billion and has attracted over 7.2 million on-chain holders.
As a result, investors can easily find liquidity for Dogecoin on various web3 protocols and centralized crypto exchanges. Additionally, Dogecoin has a total liquidity of over $24 million when traded against top digital assets like Ethereum, BNB, and USDT.
However, recent developments have started to affect Dogecoin’s popularity. The rise of new meme coins, coupled with Musk’s silence on the matter, has led some investors to look elsewhere. The emergence of the Toncoin (TON) network, with its tap-to-earn meme coin on the Telegram social platform, poses a threat to Dogecoin’s position in the top ten most valuable digital assets.
On-chain data analysis provided by Santiment reveals that Dogecoin addresses holding between 10 million and 100 million units have sold over 300 million DOGE units, worth approximately $55 million. Interestingly, short-term DOGE holders now hold 13 percent of the total supply, which increases the risk of potential sell-offs.
On the flip side, Dogecoin investors are preparing for the upcoming Bitcoin halving, which triggers the parabolic phase of the macro bull cycle. Dogecoin is the second-largest digital asset secured by the proof-of-work (PoW) consensus after Bitcoin.
Speculation surrounding dog-themed meme coins has intensified, overshadowing altcoins with real-world utility. In fact, Dogecoin is on the brink of surpassing Ripple Labs-backed XRP, as reported by Crypto News Flash.
According to Santiment, Dogecoin’s presence in the top ten is not just due to its adorable mascot but also its significant price analysis, which predicts a 45% weekly jump. The excitement surrounding a potential “dog coin season” and Binance’s listing of other meme tokens like FLOKI has leveraged Dogecoin’s charm, highlighting the power of community-driven hype in crypto valuation.
In terms of price action, Dogecoin has faced significant resistance around the 20 cent mark after a remarkable rally during the recent meme coin season. The latest market data shows that DOGE’s price has increased by around 15 percent, trading at approximately $0.19 on April 11, 2024.
Technically, 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 attempting to break through the resistance macro falling logarithmic trendline.
If DOGE can consistently close above 22 cents in the coming weeks, it is likely to reach a fresh multi-year high, marking the beginning of a new era for dog-themed meme coins.