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Will the Rise of Bonk Shrink Dogecoin's Dominace?

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By Brennan Forrest - - 5 Mins Read
Dogecoin token displayed; downward price graph
Dogecoin featured photo | Shutterstock
Dogecoin token displayed; downward price graph
Dogecoin featured photo | Shutterstock

 

The meme coin market has been doing pretty well lately, with a collective valuation surge of 4.42% in the past 24 hours.

 

The total market cap has now crossed over $24.128 billion, which is pretty impressive. Dogecoin (DOGE), the leading meme coin by market cap, saw a modest 0.51% increase during this period.

 

On the other hand, Shiba Inu (SHIB), its competitor, didn't fare so well and faced a 1.46% decline. Its value has dropped to $0.000009907 at present.

 

However, amidst this dynamic market movement, Bonk (BONK) took center stage as the standout performer within the top 10 meme coins.

 

 

 

BONK, operating on the Solana blockchain, surged an astonishing 102% within the last 24 hours, propelling its weekly performance to an impressive 144.46%. This surge positioned BONK as the fourth-best performer in the weekly timeframe.

Potential Impact on Dogecoin

The meteoric rise of BONK, coupled with the escalating enthusiasm surrounding SHIB's ecosystem and its Shibarium layer-2 network, raises questions about the future trajectory of Dogecoin.

 

If Dogecoin continues to exhibit relatively lackluster fundamental and price performances in the upcoming period, it might face a formidable challenge from these emerging meme coins.

 

Despite DOGE's enduring dominance, boasting a market cap of $17.723 billion—nearly three times that of SHIB—the recent surge of BONK shows a potential shift, thereby posing a challenge for other meme coins.

 

Currently, BONK's market cap stands at $1,809,808,138, showing its rapid ascent in a relatively short span.

Technical Analysis and Forecast for Dogecoin

Analyzing DOGE's daily chart, a favorable price channel has been evident over the past three weeks.

 

Dogecoin 1-day price chart
Dogecoin one-day price chart | CoinMarketCap

 

Despite a recent dip below this channel, DOGE appears to be striving to re-enter the ascending channel.

 

A consideration lies in whether today’s daily candle closes within this positive price channel, potentially signaling an upswing towards $0.10735, with the possibility of flipping this level into a support zone.

 

Conversely, failure to sustain within this positive price channel may precipitate a bearish scenario, causing DOGE to descend to $0.08965 soon.

 

Technical indicators hint at dwindling buyer strength, including the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI). The potential convergence of these indicators within the next 24 hours suggests a looming short-term bearish trend reversal for DOGE.

Bearish Signals Loom Over DOGE

Technical indicators on DOGE's chart suggest a looming bearish trend. Both the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) signal a weakening buyer strength.

Impending Bearish Trend Reversal

The RSI line positioned below the RSI Simple Moving Average (SMA) line and the MACD line nearing a cross below the MACD Signal line imply a probable short-term bearish trend reversal for DOGE.

 

The convergence of these indicators within the next 24 hours might signal turbulent times ahead for the meme coin.

 

The surge of Bonk (BONK) and its extraordinary performance have amplified the competition within the meme coin market and raised concerns about Dogecoin’s continued dominance.

 

While Dogecoin maintains a considerable market cap advantage, the recent surge of BONK and the dynamics within the meme coin ecosystem indicate a shifting paradigm that could potentially challenge Dogecoin's position in the future.

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