THIS is how Dogecoin can lead the memecoin market comeback – Crypto News – Crypto News
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THIS is how Dogecoin can lead the memecoin market comeback THIS is how Dogecoin can lead the memecoin market comeback

Cryptocurrency

THIS is how Dogecoin can lead the memecoin market comeback – Crypto News

Published

1 year ago

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  • Dogecoin is the most popular memecoin- and its price action could dictate the sector’s trends.
  • On-chain metrics showed a buy signal for long-term DOGE investors.

The memecoin market has shed 39.4% in market cap since the 9th of December. Over the past month, the price charts of most memecoins have been pointed downward only.

Bitcoin’s [BTC] volatility around the $100k mark has affected the altcoin market, and in turn, the memes as well.

Source: CoinMarketCap

The launch of Official Trump [TRUMP] did little to alleviate this stress. Holders were tempted to sell their other meme holdings and buy TRUMP as its price shot higher rashly.

After reaching an all-time high of $73.43 on the 19th of January, TRUMP too has been in a severe decline, falling 71% in two weeks.

TRUMP 4-hour ChartTRUMP 4-hour Chart

Source: TRUMP/USDT on TradingView

The token has fallen below the short-term range it formed, and new lows were likely ahead. The A/D indicator did not inspire much confidence either.

TRUMP’s price action could dissuade the public from buying memecoins in the near-future.

Could Dogecoin rescue the meme market?

DOGE vs SHIB and PEPEDOGE vs SHIB and PEPE

Source: Santiment

As the leading memecoin by market cap, Dogecoin [DOGE] will be a good indicator of the health of the sector at large.

At press time, it had a +0.89 correlation with Shiba Inu [SHIB], which meant that the large memecoins’ performance is closely correlated with the leader’s.

As the Santiment data above highlights, DOGE has consistently had a higher social dominance than SHIB or Pepe [PEPE].

Social dominance is the percentage share of a coin’s mentions in social media.

Dogecoin MetricsDogecoin Metrics

Source: Santiment

The on-chain metrics reflected bullishness. The dormant circulation did not show a flurry of token movement that generally precedes a wave of selling.

The mean coin age has been rising over the past six weeks as well, even though the price was unable to trend higher.

The 60-day MVRV was negative, showing short to medium term holders were at a loss. Together, the metrics presented a buy signal.

Dogecoin Orderbook HeatmapDogecoin Orderbook Heatmap

Source: MobChart

Read Dogecoin’s [DOGE] Price Prediction 2025-26

The orderbook data outlined the key support resistances for the coming days. The concentration of limit buy orders at the $0.28, $0.27, and $0.26 round numbers showed that price could gravitate to these levels before a reversal.

The orders imbalance was skewed toward the buyers in the 10% space around the current price, embellishing the idea of a bullish short-term reversal.

Next: Bitcoin’s market uncertainty: Key factors driving BTC’s movements

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