- Largest DOGE investors come back to top up their positions, metrics reveal.
- FED rate cuts have been historically bullish for Dogecoin, leading to an ATH.
- Small-cap meme coins overshadowed DOGE & SHIB with double-digit gains.
The crypto markets turned green this week after the Federal Reserve’s interest rate cut, so popular altcoins have been cut some slack from the historically red September. However, this week’s bounce-back rally has been more successful for small-cap memecoins.
Dogecoin Is Waking Up the Bulls
The two most significant meme currencies by market cap stand out as the smallest gainers: Shiba Inu (SHIB) tacked on a 6.6% weekly upswing, and Dogecoin’s (DOGE) price rose by 3% in a seven-day timeframe.
Several crypto analysts, including Ali Martinez, point to Dogecoin’s price finally breaking out of the long-term bearish constraints. Ali followed the Relative Strength Index (RSI) in his latest analysis, possibly breaking the descending line in DOGE’s daily charts.
If the top dog meme coin can hold above the $0.11 resistance line by the end of the day, this would validate Matinez’s theory. Currently, Dogecoin is changing hands at $0.1069, picking up 2% gains over the past 24 hours. A positive Chaikin Money Flow (CMF) index of 0.19 also points to large investors enlarging their DOGE positions.
Federal Reserve Cut Boosts DOGE
Federal Reserve rate cuts by half a point or more are historically bullish for DOGE, as analyst Ðima James Potts pointed out. The FED rate cut on March 17, 2017, sparked a 9,000% rally. However, the most significant rally occurred in late 2020, when Dogecoin tacked on 30,000% to reach an all-time high of $0.7316 on May 8, 2021.
Over three years later, the largest meme coin by market cap already benefits from the latest FED rate cut. The large investor activity on Dogecoin’s Proof of Work (PoW) network has picked up pace with a 1,757% increase in the latest 24-hour period. Meanwhile, Dogecoin’s crypto exchange netflows nearly doubled from $2.3 million on September 18 and $4.52M the following day.
This sums up the weekly exchange flow to $17.74 million, with the peak on September 13, 2024, coinciding with Dogecoin’s surge to $0.10788. According to IntoTheBlock, this puts DOGE’s upward trajectory at the mercy of confluent resistance, starting at $0.1081.
If DOGE holds support above $0.108, the next resistance cluster will offer a massive 47.17 billion token resistance, meaning traders will likely start making profits. Split between 344.81K addresses, this resistance wall is twice as large as the resistance levels of $0.137 and above, holding smaller amounts among more crypto wallets.
On the Flipside
- Zooming out of the technical perspective, multiple factors, including the regulatory environment and adoption cases, can affect Dogecoin’s price and growth.
Why This Matters
Being the second largest Proof of Work (PoW) blockchain, Dogecoin often emulates the general market sentiment and has proven its position as a long-term top-10 contender by market cap.
Discover DailyCoin’s top crypto news:
FTX Auditor Slammed by SEC for Major Oversights and Failures
Trump Goes Burgers for Bitcoin as Crypto Pandering Continues
