The meme coin market has been particularly volatile this week, with most tokens seeing significant price swings.
Dogecoin (DOGE) hasn’t been spared from the volatility and has faced a 20% decline since Sunday’s high.
However, investor interest is now shifting towards Dogecoin20 (DOGE20), an emerging project set to debut on Uniswap later this month.
Dogecoin price slides after hitting $0.22 resistance level
Dogecoin has taken a bearish turn this week.
The meme coin’s price has slid to $0.179 after three consecutive daily red candles, marking DOGE’s lowest price in the past nine days.
This sell-off seems to have been sparked by Dogecoin’s inability to pass the $0.22 resistance zone.
Traders attempted to push price through that zone on Thursday and Sunday of last week, but each rally was rejected – creating a double-top pattern on the 4-hour chart.
Adding to the bearish momentum, DOGE closed below its 20-day exponential moving average (EMA) on the daily timeframe yesterday.
This is often viewed as a sell signal by technical traders since it indicates waning upside momentum.
DOGE’s subdued price action is also evident in its dwindling trading volumes.
Spot volumes have slumped 32% in the past 24 hours as speculative interest dries up following the sell-off.
Of course, volatility is par for the course with Dogecoin – yet many traders believe this latest downturn could persist if DOGE fails to reclaim key levels soon.
Meme coin market cools as traders book profits
The bearish sentiment hanging over Dogecoin has filtered through to the broader meme coin market.
After passing $60 billion in total market cap last week, the combined value of all meme coins has slipped back below that level as traders start to take profits.
Spot trading volumes are decreasing, too.
Over the past 24 hours, meme coin activity is down by around 20% to $8.1 billion.
Some of the biggest losers during this stretch include SHIB, PEPE, FLOKI, and BONK – which have all shed over 10% of their value in the past week alone.
Smaller coins like WEN and MOG have fared even worse, plunging over 25%.
However, a few coins like WIF and BOME have managed to stay strong, with their value increasing by over 20% during the same period.
With speculative buying seemingly taking a breather this week, the meme coin market is clearly in a state of flux.
Dogecoin20’s staking & deflationary twist could rekindle meme mania
While the recent meme coin downturn has dampened investor enthusiasm, one upcoming listing has traders betting that things could soon change – Dogecoin20.
As its name suggests, Dogecoin20 pays homage to the OG meme coin that started it all.
However, this project injects some key utility into the mix that its creators hope will help sustain long-term interest.
Central to Dogecoin20’s pitch is its staking protocol, which aims to incentivize meme coin investors to hold the token.
By locking up their DOGE20, holders can earn estimated annual yields of 61% - with 47.7 billion tokens staked already.
Dogecoin20 is also bringing another twist to the table.
While the supply of the original Dogecoin is inflationary, DOGE20 will have a fixed maximum supply of 140 billion tokens.
25% of that total supply will be made available to presale investors.
Speaking of which, the presale hit a significant milestone in late March by raising $10 million in funding.
However, still can buy DOGE20 at the discounted rate of $0.00022 before the token’s upcoming Uniswap listing on Doge Day (April 20).
If the presale interest is any indication, Dogecoin20 could be well-positioned to buck the ongoing meme coin slump.
Its staking rewards, combined with the growing Telegram community, may provide the catalysts needed for a successful open market debut.