Dogecoin might be the most wanted, but what it needs is THIS
Dogecoin has built up a reputation for being active only on the back of the news around it. For the rest of the time, it remains stable on the charts, or more appropriately, stagnant.
However, this hasn’t stopped the altcoin from rising. And, according to some, this has led to DOGE becoming a coin of the people. Not in terms of use cases, but more in the ways of a trend.
Dogecoin making records
Yesterday, for a brief period, Dogecoin passed stablecoin USDC and became the ninth-largest cryptocurrency in the market. With a market cap of $32.5 billion, this really is an achievement for the underdog (pun intended).
However, the slow to no movement of DOGE is not fading away, even though investors’ investment interest definitely is. Except for on 18 October, volumes have been dragging under the $1 billion mark.
On top of that, DOGE holders have been preferably cashing out since the market has seen over $5 million worth of longs liquidated in the last 4 days alone.
And, even though investors have been rising at the rate of almost 30k new additions per day, transaction figures continue to be weak.
One of the reasons for the lack of movement is the fact that people are choosing to HODL. 1-3 month holders have increased. And at the same time, 3-6 month holders have decreased since they are holding further. This has led to a 7.3% increase (5 billion DOGE, worth $2.5 billion) in 6-12 month holders in just 20 days.
However, the aforementioned immobility could change as soon as DOGE is flooded with new money. If history is any evidence, all it needs is a tweet from the DOGEfather or the very famous Cuban shark.
What’s more, Dogecoin has already become the social coin, the one that everyone wants. In fact, in a recent report, Dogecoin was declared as the most known and most preferred altcoin in the market.
Even the likes of Cardano, Solana, and XRP paled in comparison to DOGE.
Dogecoin most preferred asset after Bitcoin and Ethereum | Source: Cardify
But, how many of these interested prospects will actually convert into investors? Well, that will remain unknown for now since DOGE isn’t showing any clear signs of bullishness at the moment.
The altcoin hasn’t breached its $0.250 resistance since September’s crash, but it has on multiple occasions tested the $0.234 support level.
Dogecoin price action | Source: TradingView – AMBCrypto
Thus, if investors jump in and the price goes up or if something happens the other way around, we could see a rise in prices and a surge in participation. This will lead to higher profits.
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Aaryamann Shrivastava, Khareem Sudlow