Although many assets in the cryptocurrency sector have resumed their bullish run from the previous weeks, Dogecoin (DOGE) still seems to be waiting for its turn. Despite the growing transaction volume indicating heightened activity, the meme-inspired cryptocurrency faces downward price pressure.
Dogecoin has found utility in various sectors, including payments, and its association with Tesla (NASDAQ: TSLA) CEO Elon Musk suggests potential additional use cases. The large-cap meme coin, with a fully diluted valuation (FDV) of about $28 billion, has about 7 million on-chain holders.
Even with significant user engagement and substantial market presence, AI-based forecasts suggest a bearish outlook for Dogecoin in the coming weeks
Picks for you
AI predictions and market sentiments
Despite overall bullish market conditions, AI algorithms predict a bearish future for Dogecoin’s short-term prospects.CoinCodex forecasts a 10.18% decrease in Dogecoin’s price to $0.136776 by May 20, 2024, influenced by bearish market sentiment and a ‘Greed’ index of 66.
Over the past month, the analysis notes a 50% rate of green days and an 11.29% volatility rate, highlighting the instability in Dogecoin’s market behavior.
Challenges from emerging competitors
Recent trends suggest a shift in the meme coin landscape. The rise of Toncoin (TON) and its integration with the Telegram platform pose direct challenges to Dogecoin’s dominance.
On-chain data from Santiment shows significant selling from wallets holding between 10 million and 100 million DOGE, totaling over 300 million units. Meanwhile, short-term holders have amassed 13% of the total supply, raising the risk of market sell-offs.
Even with the bearish outlook from some AI predictions, other market analysts identify potential bullish signals. A notable bull flag pattern on Dogecoin’s daily chart suggests the possibility of an impending rally, says Crypto analyst Trader Tardigrade.
Dogecoin may potentially recover soon and continue its ascent towards $1 by year’s end. However, given the inherent volatility of the cryptocurrency market, conditions can change rapidly. It is crucial for investors to perform comprehensive research and consider all factors before making any investment decisions.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
