- During the last major decrease in Doge, a considerable amount of liquidity of $ 380 million+ was trapped at $ 0.50
- The total memecoin market capitalization is now much larger than in 2021, but the OI and the daily volume have remained low
The Memecoin sector recovered on the charts for the past 24 hours. This recovery followed a cascade of liquidations on the back of the public spit between President Trump and Elon Musk.
Dogecoin [DOGE]The largest memecoin in the market, has given the leadership, with the same flashy early signals of a potential recovery at the time of press. However, the real question is – does this rebound have a lasting force?
Signals from Dogecoin statistics
At the time of writing there seemed to be a considerable liquidity around the $ 0.50 zone. It was more than $ 380 million doge, made up of the previous rally of the Memecoin.
Normally, large groups of short positions are followed by significant meetings after the sales pressure decreases. Before Dog went on his last rise, it is consequence A similar pattern by building up at the bottom and then rising steeply higher.
At the time of writing, the graph underlined a potential mirror arrangement that was reformed.
Source: Alfractaal
If the falling trend turns itself, an outbreak of the higher liquidity decrease should develop around $ 0.50.
What is more, the doge/btc pair is now approaching an important support zone – creepy similar to the circumstances that can be seen for Doge’s legendary rally from 2021.
At the same time, the DOG network has remained strong, according to the latter Data from Santiment. At the time of the press it had 7.97 million active addresses – more than USDT or XRP. With such a wider basis, Dogecoin was able to handle the ups and downs of the market.
Bitcoin was in second place with 55.39 million holders behind Ethereum with 148.39 m. From his side, Doge’s rising number of users could prepare for a new increase in charts.
And yet, if resistance levels are not broken, there can be a delay in price gains or a small pride in prize. However, it is worth mentioning that the outcome is not completely dependent on the level of activity and convenience in the trade.
Why could other memecoins follow?
The Memecoin index has begun to return after last month’s slide. Because of this recovery, the total market value for Memecoins is already higher than in 2021.
And yet the open interest in all memecoins has not been very high. It had a value of only $ 3.2 billion, with daily trade volumes of $ 12 billion. These figures are considerably lower than the same for Bitcoin or Ethereum.
The divergence between the prices of Memecoins and Bitcoin suggested that Memecoins have not performed well lately.
Yet this category of Altcoins tends to climb when BTC meets. In fact, great price fluctuations are proof that the sector could attract new speculation in the future.
Source: Alfractaal
Dogecoin and Top Memecoins can pick up again in the near future if there is a good shift in the Cryptomarkt.
At the same time, since volume and interest have been low, a strong increase may need extra enthusiasm from retail and institutional traders.
Credit : ambcrypto.com
