Dogecoin (DOGE) is down sharply on Wednesday, with the price having dipped around 10% over the past 24 hours, in line with a broader sell-off witnessed across the crypto market.
Fears that the US SEC might not approve spot Bitcoin ETFs in the very near-future have triggered frenzied trading conditions – Dogecoin has seen spot trading volumes of around $1 billion across major exchanges so far on Wednesday as per Yahoo, the highest since December the 11th.
Having started the day above $0.09, Dogecoin dipped as low as the $0.076s, but has since recovered to around $0.082.
The violent drop saw leveraged Dogecoin long futures positions worth nearly $10 million wiped out on Monday, the highest one-day-long liquidation event in over three months, as per coinglass.com.
Dogecoin Futures Liquidations / Source: Coinglass
Price Prediction – More Downside for Dogecoin (DOGE)?
Dogecoin’s latest price drop confirms bearish price formations that been flashing warning signs in recent days.
Firstly, since peaking in price in December, Dogecoin has been consolidating within a bearish descending triangle patter.
Secondly, Dogecoin broke below an uptrend that had been in play since October just before the end of 2024.
Wednesday’s big drop below key short-term support in the $0.088 area confirmed that the near-term technical bias is likely to be bearish.
DOGE could well be in for more downside and near-term price predictions may remain bearish.
Dogecoin (DOGE) Chart / Source: TradingView
Can Dogecoin Hit $1 in 2024?
While Dogecoin’s very short-term outlook might be ugly, thanks mostly to technicals, assuming that the broader crypto bull market remains in flow, and dips probably won’t last too long or be too deep.
Indeed, as risk appetite across the crypto market increases this year amid spot crypto ETF approvals and a rate-cutting cycle from the Fed, Dogecoin is a good candidate to perform well.
That’s particularly true in light of the fact that Dogecoin largely failed to keep pace with Bitcoin (BTC) and Ether (ETH)’s big price pumps in 2023, meaning that Dogecoin might represent a comparatively favorable value bet.
Dogecoin briefly reached a market cap of $82 billion in 2021.
Assuming the cryptocurrency can surpass this level in 2024 or 2025, DOGE stands a chance of reaching $1.
There are currently around 142 billion Dogecoins in issuance, meaning DOGE would have to reach a market cap of $142 billion for each token to be worth $1.
DOGE Alternative to Consider – Sponge V2 ($SPONGEV2)
Dogecoin could deliver holders gains in the region of 10x this bull market.
That’s not bad, but many meme coin investors are aiming higher, i.e. for gains in the region of 100x.
They should look no further than Sponge V2 ($SPONGEV2), the reincarnation of the legendary Spongebob Squarepants-themed $SPONGE token, which reached a market cap of nearly $100 million earlier in 2023 and delivered gains to its earlier investors in the region of 100x.
$SPONGE token holders will be able to stake their tokens to receive an equivalent amount of $SPONGEV2 tokens, as well as to start earning staking rewards (paid out in $SPONGEV2) with a minimum APY of 40%.
$SPONGEV2’s main advantage over $SPONGE is that it will power a new play-to-earn game, the details of which are yet to be released.
But we do know that there will be a free version and paid version of the game.
The post Dogecoin Price Prediction as DOGE Slumps 10% as $1 Billion Trading Volume Comes In – Can DOGE Hit $1 in 2024? appeared first on Cryptonews.