Dogecoin bulls are ready to defend key support areas to prevent their weekly accrued gains from being wiped out as bears plan revenge missions. The largest meme coin continues to grace the cryptocurrency market with an unstoppable rally, as gains surpassed the 100% mark in a week. Over the last 24 hours, Dogecoin price extended its bullish outlook 21% higher, bringing its total accumulated gains to 112% in just seven days.
Key Fundamentals Support the Dogecoin Price Rally
Elon Musk, the world’s wealthiest man – and now the CEO of Twitter may have triggered the Dogecoin price rally mid this week; however, other on-chain and macro factors kept the uptrend intact, preventing sudden retracements.
At the time of writing, Dogecoin price exchanged hands at $0.1270, barely a day after it climbed above $0.1000. As discussed in this analysis on Saturday, DOGE exhibits the potential to brush shoulders with $0.1400, a move likely to set the pace for the second phase of its run-up to $1.0000.
According to Dogechain, a platform focusing on powering DOGE in DeFi (decentralized finance), GameFi and NFTs – Dogecoin is fast becoming one of the most frequented blockchains in the industry. Dogechain shared the details of on-chain transactions surpassing 2.5 million in the last 24 hours.
On-chain data from Santiment concurred with Dogechain, as shown in the chart below. About $14.25 billion has been recorded in trading volume, following a sharp swing from $3.00 billion on October 29. Dogecoin price has no plans of reversing the trend as long as interest in the token keeps hitting new levels.
Although most Dogecoin addresses are in profit, holders seem to be in for the long run. One would have expected them to book profits, but the MVRV (market value realized value) holds as high as 44.35%.
According to Santiment, this metric tracks the profit or loss of DOGE holders. It does so by monitoring the price at which these tokens moved last compared to their current market value. A reading above 1 suggests that Dogecoin is relatively overvalued.
In the case of Dogecoin, holders wish to refrain from selling despite the meme coin’s overvalued status. Nevertheless, this is a crucial indicator to keep at arm’s length because it could be useful for locking in the gains and avoiding sudden bull traps.
Both new and active addresses have grown since Elon Musk took the reins at Twitter. IntoTheBlock’s chart paints a bullish picture for Dogecoin because as long as the fundamental factors behind the rally improve, the price will have the required resources to sustain an uptrend.
New addresses joining the network rose marginally above 30,000 on October 29, compared to the 12,000 recorded on October 1. A similar growth pattern, although slightly aggressive, was exhibited by the protocol’s active addresses, which held at 91,100 at the time of writing.
Dogecoin Price Prediction – Is This the Time to Lock In Gains
Dogecoin has printed a bear candle for the first time since it broke above a key descending trendline on the daily chart at $0.0632. After breaking above resistance at $0.1200, highlighted by the lower gray band, Dogecoin’s price could not push to highs above $0.2000.
Support at $0.1200 is necessary to allow more bulls to join the market, especially with the new week beginning in several hours. The OBV (On Balance Volume) indicator points downward, warning that volume could flip negatively, hampering price growth.
Dogecoin’s DMI (Directional Movement Index) appears to have reached its elastic limit. If the -DI (in blue) and the +DI (in orange) reduce the divergence significantly, buyers will find it challenging to prevent a pullback. Therefore, it may be prudent for investors to book profits while scanning for new entry positions as the price moves to $1.0000.
Dogecoin Alternative – Tamadoge
As Dogecoin rallies due to the hype created by Elon Musk’s Twitter takeover, investors should be diligent in considering other meme coins in the market with the potential to surpass DOGE in the quest to tag $1.0000.
One such token is Tamadoge (TAMA), a crypto project that exploded by more than 2,000% following its initial exchange offering (IEO) on the OKX exchange.
Tamadoge price has since retreated 87.4% from its all-time high of $0.1944 on October 4. The meme coin with a bright future in the P2E and NFT sectors currently holds 26% above its all-time low of $0.01993.
These declines are largely associated with the general bear market conditions that have dominated since November 2021. Moreover, early investors booked early profits, which mounted more pressure on TAMA.
Tamadoge remains the third-largest meme coin, boasting $25 million in market capitalization. It stands out from its peers for having strong tokenomics. Furthermore, there are rumors of more listings coming its way to boost its adoption across the crypto market.
Tamadoge offers more utility than either DOGE or SHIB and, significantly, has a considerably lower supply. It also has a play-to-earn game and NFT ownership program that have existed since its inception.
Unlike Dogecoin, which has a total supply in billions of tokens, Tamadoge has a maximum supply of only 2 billion tokens. In addition, TAMA is a deflationary asset where 5% of all transactions are burned to shrink its supply further.
Buy TAMA on OKX CEX
Buy TAMA on OKX DEX
Read the full article here
