- Statistics show that the biggest DOGE investors are back to increase their positions.
- FED rate cuts have historically been bullish for Dogecoin, leading to an ATH.
- The small-cap meme coin has been on a double-digit rise, outperforming DOGE and SHIB.
Cryptocurrency markets turned green this week after the Federal Reserve cut interest rates, with popular altcoins easing off their historically red September. However, this week’s rally was more successful for smaller Mimecoins.
Dogecoin is waking up the bulls
The two largest meme currencies by market cap had the smallest gains: Shiba Inu (SHIB) is up 6.6% for the week, while Dogecoin (DOGE) is up 3% over the past seven days.
Several crypto analysts, including Ali Martinez, point out that the price of Dogecoin has finally broken free of its long-term bearish constraints. Ali followed the Relative Strength Index (RSI) in his latest analysis, and it is likely that DOGE has broken the downtrend line on the daily chart.
If the Topdog meme coin can stay above the $0.11 resistance level by the end of the day, it will validate Martinez’s theory. Currently, Dogecoin is trading at $0.1069, showing a 2% gain in the last 24 hours. The positive Chaikin Money Flow (CMF) index of 0.19 also indicates that large investors are increasing their DOGE positions.
DOGE Gets a Boost from Fed Cuts
As analyst Ðima James Potts points out, a Fed rate cut of more than 0.5 percentage points is historically bullish for DOGE. The Fed rate cut on March 17, 2017 triggered a 9,000% rally. However, the biggest rally occurred in late 2020, when Dogecoin gained another 30,000% to reach an all-time high of $0.7316 on May 8, 2021.
Three years later, the largest meme coin by market cap is already benefiting from the recent Fed rate cut. Mass investor activity on Dogecoin’s proof-of-work (PoW) network has picked up speed, with a 1,757% increase in the past 24 hours. Meanwhile, Dogecoin’s net inflows to cryptocurrency exchanges have nearly doubled from $2.3 million on September 18 to $4.52 million the following day.
This sums up the weekly trading volume to $17.74 million, with the high coming on September 13, 2024, which coincides with Dogecoin’s surge to $0.10788. According to IntoTheBlock, this leaves DOGE’s upside trajectory at the mercy of consolidation resistance starting at $0.1081.
If DOGE holds support above $0.108, the next resistance cluster will offer massive token resistance of 47.17 billion, which means traders are likely to start taking profits. This resistance wall, divided by 344.81K addresses, holds less than twice as much in crypto wallets than the resistance level above $0.137.
On the other side
- Beyond the technical perspective, several factors, including the regulatory environment and adoption cases, could impact the price and growth of Dogecoin.
Why this matters
Dogecoin, the second-largest proof-of-work (PoW) blockchain, often follows general market sentiment and has proven itself to be a long-term top-10 contender by market cap.
Get the latest cryptocurrency news from DailyCoin:
FTX Auditor Criticized by SEC for Critical Mistakes and Failures
Trump Eats Burger for Bitcoin as Crypto Advocacy Continues