Dogecoin Ascent Slows, But Why Are Analysts Still Bullish About The Memecoin?

Dogecoin, the original memecoin of the crypto industry, has not seen a monumental rise in price unlike other altcoins of late. According to CoinMarketCap, DOGE has only risen 5.56% in the past week with its biggest gains seen in the monthly time frame. 

At its current market cap of $11.3 billion, the token is surpassed by other altcoins in terms of growth. However, DOGE still remains a dominant force in the world of memecoins as it has been for a long time. 

DOGE Compared To Other Memecoins

Compared to its peers, Dogecoin is still a popular choice for investors in the crypto industry. In terms of market cap, the token dominates SHIB by a wider margin. Even with Shiba Inu disrupting DOGE’s dominance, it still has a long way to go for SHIB to be level with DOGE. 

However, Shiba Inu has been distancing itself from its memecoin past. With Shibarium around the corner, we might see SHIB gain more dominance in space. Since last year, Dogecoin has been silent in the development space with the only spike in activity being the October 2022 upgrade of the token’s wallet. 

But external developments still favor DOGE. According to recent news about Tesla’s financials, the company has not bought or sold Bitcoin for two consecutive quarters. Despite this, the company still only accepts DOGE for crypto payments. This gives DOGE some real life utility as a form of payment.

However, with the electric vehicle industry facing a tougher time right now, we might see DOGE perform poorly compared to other memecoins, or altcoins in that matter, in the foreseeable future. 

Sideways Movement Continues For DOGE

As the time of writing, the price movement of DOGE has stagnated and started to oscillate above and below $0.08. Analysts are bullish about the coin’s short to medium term growth with the target set at $0.118. 

However, Dogecoin bulls should lower their expectations as the previous few weeks shows. DOGE, even with strong correlation with Bitcoin and Ethereum, only grew by 11% which is comparably lower than other altcoins who are in the top 100 list.

Crypto total market cap at $997 billion on the daily chart | Chart:

Now that Bitcoin and Ethereum have hit their respective price ceilings, Dogecoin will have a harder time to rally in price in the medium to long term. Short term, we might see DOGE bulls break the deadlock and gain ground above $0.093. 

But caution should be exercised as the stagnant nature of the current price movement could also be the start of a strong bearish market movement.

-Featured image by Money

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