Dogecoin (DOGE), despite the fact that many other cryptocurrency assets have continued their recent bull run, appears to be waiting for its moment. The price of the meme-inspired cryptocurrency is under pressure to decline even if the volume of transactions has increased, suggesting increased activity.
Dogecoin has proven useful in a number of industries, including payments, and its connection to Elon Musk, the CEO of Tesla (NASDAQ: TSLA), raises the possibility of further applications. There are over 7 million on-chain investors of the large-cap meme coin, which has a fully diluted valuation (FDV) of roughly $28 billion.
Despite high user activity and a sizable market share, AI-based projections point to a negative future for Dogecoin in the upcoming days and weeks.
Dogecoin's short-term prospects are expected to be gloomy despite generally favorable market conditions, according to AI algorithms. CoinCodex projects a 10.18% decline in Dogecoin's price to $0.136776 by May 20, 2024, driven by pessimistic market sentiment and a 'Greed' index of 66.
The data shows 11.29% volatility and a 50% rate of green days over the last month, underscoring the erratic nature of Dogecoin's market activity.
Threats from newly established rivals
Current patterns point to a change in the meme coin scene. The supremacy of Dogecoin is directly threatened by the emergence of Toncoin (TON) and its connection with the Telegram network.
Santiment's on-chain data reveals substantial selling from wallets with between 10 million and 100 million DOGE, or more than 300 million units, in total. In the meanwhile, there is a greater chance of market sell-offs because short-term holders now own 13% of the entire supply.
Certain AI projections have a pessimistic perspective, but other market analysts see possible favorable indications. According to cryptocurrency specialist Trader Tardigrade, Dogecoin's daily chart has a prominent bull flag pattern that may indicate an approaching surge.
It's possible that Dogecoin will bounce back quickly and keep rising, reaching $1 before the end of the year. Conditions can, however, shift quickly due to the bitcoin market's inherent volatility. Before making any investment selections, investors must conduct thorough research and take all relevant considerations into account.
April 2024, Cryptoniteuae