The price of Dogecoin (DOGE) has dropped by 1% in the past 24 hours, with the meme token re-entering the top ten of cryptocurrencies by market cap prior to its loss today.
At $0.058112, DOGE is down by 5% in a week and by 6% in a month, with the original meme coin also having fallen by 13% since the beginning of the year, in contrast to many other major tokens (e.g. BTC, ETH, XRP, SOL).
However, the overselling that has taken hold of DOGE in the past few months may have put it in a good position for a strong rebound, with the cryptocurrency potentially on course to have a strong end to the year.
Based solely on technical indicators, many analysts would expect DOGE to see a recovery very soon.
Its relative strength index (purple) has almost reached 30 again, after having already spent nearly two months below 50, with much of this period seeing the indicator actually below 40 or even lower.
Similarly, DOGE’s 30-day exponential moving average (yellow) has been some way below its 200-day average (blue) for several months now, another sign that the coin is grossly undervalued and is overdue some kind of joy.
The problem is, however, that DOGE’s support level (green) continues to decline, and there’s every chance it could be broken yet again, with a move below $0.580 potentially opening the floodgates to further losses.
If we were talking about a normal asset (e.g. a stock of a useful company), then the above indicators would all-but guarantee a rebound in the near future.
Yet this isn’t quite the case when talking about a meme token like DOGE, which lacks fundamentals and utility.
As such, a skeptic would be tempted to conclude that Dogecoin is suffering from a very long-term decline that may not be reserved, at least not during the ongoing bear market.
It would also seem that whales are more likely to dump the token at the moment, rather than accumulate it, with recent large transfers suggesting this.
Another big sign of weakness is the fact that DOGE’s 24-hour volume has dropped from as much as $9 billion last November to about $175 million today, another indicator that the market has lost interest in the coin.
The prognosis, therefore, doesn’t look great for DOGE, which continues to depend on the possible integration of cryptocurrency payments by X (formerly Twitter).
While X is certainly working towards introducing digital payments of some kind on its platform, it’s not clear if and when this will include cryptocurrency payments, while it’s also not clear that DOGE will be involved.
But assuming that it eventually does, DOGE’s price would skyrocket, reaching $0.1 in a matter of weeks before beginning a climb towards $1.
But if this never materializes, it would be plausible to suggest that DOGE may continue its current decline, falling to $0.50 and lower in the coming months.
DOGE may look very weak at the moment, but there are more promising meme coins in the market right now, including a number of presale tokens that could rally big once they list on exchanges.
The leading example of this is Meme Kombat (MK), an Ethereum-based platform that enables users to place bets on AI-generated meme character battles.
Having already raised more than $475,000, Meme Kombat’s presale is already moving quickly through the gears, with a rising number of investors becoming interested in its innovative platform.
Meme Kombat will enable its users to bet against each on the results of the aforementioned meme battles, with rewards and winnings being paid out in the form of its native token, MK.
Set to launch at a time when interest in meme tokens continues to be strong, Meme Kombat will also feature regular contests and competitions, in addition to its core betting feature.
Its native token, MK, is an ERC-20 cryptocurrency with a hard supply cap of 120 million tokens, with 50% of this allocated to the sale.
Another 30% is being reserved for staking and battle rewards, with the ability to stake MK making it doubly profitable.
Investors can buy some early by going to Meme Kombat’s official website and connecting their crypto wallets, such as MetaMask.
1 MK will be $0.1667 for the entire sale, although this will likely rise much higher once the offering ends and the token lists on exchanges.