The Dogecoin price has dropped by 6.5% in the past 24 hours, sliding to $0.07726 as the wider crypto market continues to suffer from profit-taking and loss-cutting in the wake of this month’s Bitcoin ETF approvals.
DOGE is now down by 18% in the past month, and with the meme token also having fallen by 13.5% in the last 12 months, today’s fall only serves to emphasize a disappointing period for the coin.
However, it’s now arguable that the market has oversold DOGE, and that the latter may therefore be due an upwards correction in due course.
Dogecoin Price Prediction as $800 Million Sends DOGE into the Red – Buy the Dip?
DOGE’s indicators suggest that, while the coin has certainly fallen significantly in recent days, it still has space for falling more before it becomes grossly oversold.
For instance, its 30-day average (yellow) has indeed declined steadily over the past few weeks, yet it still remains well above its 200-day (blue), suggesting that further falls are entirely plausible.
Source: TradingView
Similarly, DOGE’s relative strength index (purple) is now falling to 40, and given its current trajectory, a fall towards – and below – 30 is entirely likely.
DOGE has dropped below earlier supports in recent weeks, so it will be interesting to see if its current support level (green) can resist a drop below $0.0770.
It probably won’t, although it does seem that at least some traders are using the current slump as an opportunity to buy the meme token at a discount.
166,201,150 #DOGE (14,003,843 USD) transferred from #Robinhood to unknown wallethttps://t.co/8zNLqCTCcn
— Whale Alert (@whale_alert) January 22, 2024
As such, it’s probably not worth getting too despondent about DOGE, which as a meme token, can often suffer disproportionately whenever the market faces a selloff.
Conversely, a return to more bullish conditions later in the month may help the Dogecoin price recover healthily, with traders likely to begin looking forward to the next Bitcoin halving soon enough.
On top of this, there always remains a chance that DOGE will benefit whenever X introduces cryptocurrency payments on its social network, with the company recently publishing a blog post in which it declared plans to roll out peer-to-peer payments this year.
For this reason, DOGE could make a strong comeback in the next few months, potentially reaching $0.10 by spring.
New Meme Coins with Higher Potential
DOGE may take some time to recover significantly, so traders may prefer to investigate newer, small-cap meme coins at the moment.
Luckily, there are a variety of several promising meme tokens in the market, with some of these potentially on course to rally big once they list.
One of these is Sponge (SPONGE), an ERC-20 token that originally listed in April 2023, when it rallied by as much as 150%.
It’s in the process of rolling out the second version of its token, which provides a new staking model and also serves as the utility token of a new SpongeBob-themed play-to-earn game.
$SPONGE Update!
We’ve hit a new milestone with 5,390,882,888 tokens staked, valued at $5,233,589.24!
With a current APY of +300% and a price of $0.0009663 (+18% increase), $SPONGE is stronger than ever.
Don’t miss out, join the takeover! #SpongeV2 #Web3 #Alts pic.twitter.com/GMhqAnTehI
— $SPONGE (@spongeoneth) January 19, 2024
More info on the P2E game are due to emerge in the next few weeks, although one thing that is clear is that it will reward players with Sponge V2 tokens according to where they rank in the game.
Holders of the existing version of SPONGE can claim V2 by going to the official Sponge website and staking the current version.
This will give them a 1:1 entitlement to Sponge V2 tokens once they’re ready, with those who continue to stake the new token set to earn a higher yield than they did before.
In fact, the current APY for SPONGE V2 is now able 300%, depending on for how long holders have their tokens locked up.
Given the greater incentive to stake tokens, it’s entirely likely that a higher percentage of SPONGE V2’s supply will be taken out of circulation.
As such, this could boost relative demand and, in turn, SPONGE V2’s price.
Combined with Sponge’s playful use of SpongeBob memes, this could all help SPONGE V2 have an even better listing than its predecessor.
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