Tech billionaire Elon Musk’s unwavering support for Dogecoin (DOGE) has helped the meme coin maintain its position as one of the top ten most valuable digital assets.
According to on-chain data, some DOGE whales have been selling their holdings to short-term holders who are likely to trade them for new meme coins.
Despite this, DOGE remains the leading meme coin by market cap, thanks to Musk and his family of unicorn companies. With a fully diluted valuation of around $28 billion, DOGE now has over 7.2 million on-chain holders.
As a result, it is highly unlikely that investors would struggle to find liquidity for Dogecoin on various web3 protocols and centralized crypto exchanges. In fact, Dogecoin has a total liquidity of over $24 million against top digital assets such as Ethereum, BNB, and USDT.
However, recent data suggests that the rise of new meme coins and Musk’s silence on the matter is driving investors away from Dogecoin. Additionally, the rise of the Toncoin network, fueled by its tap-to-earn meme coin on the Telegram social platform, poses a threat to Dogecoin’s position in the top ten.
Santiment’s on-chain data analysis reveals that Dogecoin addresses holding between 10 million and 100 million units have sold over 300 million DOGE units, worth approximately $55 million. Interestingly, short-term DOGE holders now own 13 percent of the total supply, increasing the risk of potential sell-offs.
On the flip side, Dogecoin investors are preparing for the upcoming Bitcoin halving, which triggers the parabolic phase of the macro bull cycle. Dogecoin is the second-largest digital asset secured by the proof-of-work consensus after Bitcoin.
As a result, speculation on dog-themed meme coins has surged, overshadowing altcoins with real-world utility. Dogecoin is even on the verge of surpassing Ripple Labs-backed XRP.
Santiment’s insight highlights Dogecoin’s presence in the top ten, noting its adorable mascot and significant price analysis predicting a 45% weekly jump. The excitement over a potential “dog coin season” and Binance listing other meme tokens like FLOKI has leveraged Dogecoin’s charm, showcasing the power of community-driven hype in crypto valuation.
In terms of price action, Dogecoin has faced significant resistance around 20 cents after a remarkable rally during the recent meme coin season. However, the latest market data shows a 15% gain, with DOGE trading at around $0.19 on April 11, 2024.
From a technical standpoint, DOGE’s price is aiming to retest its all-time high, following a bullish breakout earlier this year. Additionally, DOGE’s price against Bitcoin is attempting to break through the resistance of a macro falling logarithmic trendline.
If DOGE can consistently close above 22 cents in the coming weeks, it is expected to reach a fresh multi-year high, marking the start of a new era for dog-themed meme coins.