Dogecoin’s Stability Overthrows BTC and its Rivalry with Shiba Inu
Dogecoin (DOGE), the widely recognized meme cryptocurrency, has exhibited impressive price stability, outperforming the flagship cryptocurrency, Bitcoin (BTC). As per TradingView data, Dogecoin’s 30-day realized volatility stood at 30%, compared to Bitcoin’s 35%. This measure reflects the standard deviation of the daily percentage price change over a month.
DOGE as a stablecoin
Historically, Dogecoin was perceived as a more volatile entity compared to Bitcoin. The latter, having been introduced in 2009, has matured over the years and has seen increased participation from institutions. In contrast, since its inception in 2013, Dogecoin was often viewed as a less serious venture in the crypto realm. This recent stability of Dogecoin, however, doesn’t necessarily indicate market maturity. It might simply be due to decreased investor interest in alternative cryptocurrencies. With Bitcoin’s market dominance now at 50%, there seems to be a shift of liquidity from altcoins to Bitcoin.
In the meme coin universe, the rivalry between Dogecoin and Shiba Inu (SHIB) remains intense. While SHIB made headlines with its dramatic rally, Dogecoin has started gaining ground as a more established crypto entity, with notable backers like Elon Musk and Vitalik Buterin. Analyzing the price action on established crypto exchanges like Gate.io, Dogecoin price seems better poised to reach the $1 mark compared to SHIB, given its current trading price of $0.06 versus SHIB’s $0.00000737. However, the dynamic between the two could change, particularly if there are significant tokenomics updates planned for SHIB.
Despite its stability, Dogecoin’s price faces potential challenges. Technical analysis reveals a descending triangle pattern, typically bearish, formed due to a descending resistance trendline since November 2022. The price could potentially drop by nearly 50% if it breaks below the key support level of $0.059. Conversely, an uptrend towards the resistance line could lead to a 16% increase. The declining Relative Strength Index (RSI) below 50 aligns with this potential downturn.
DOGE price outlook
Nevertheless, there’s a glimpse of hope for DOGE holders. On the daily timeframe, a double bottom pattern, a bullish sign, has been identified since August 17. This pattern, combined with a bullish divergence in the daily RSI, may signal a potential trend reversal. Yet, this might only lead to a short-term bullish move, possibly reaching a resistance level at $0.070 before another downturn. The decisive factor will be whether Dogecoin can maintain its support at $0.059 or drop below it, which would set the trajectory for either a 15% surge or a 50% fall. At the same time, Doge’s price prediction on Gate.io procures a continuous yearly rise, once again, affirming a positive outlook for DOGE.
Dogecoin’s Historical Context and SHIB Affairs
Dogecoin, often symbolized as DOGE, was created in December 2013 by Billy Markus and Jackson Palmer. It started as a light-hearted jest, drawing inspiration from the then-popular “Doge” meme featuring a Shiba Inu dog. The meme, characterized by multicolored text in broken English and Comic Sans font, became an internet sensation, and so did Dogecoin in its early days. What began as a playful alternative to Bitcoin quickly garnered a dedicated community, propelling Dogecoin from meme status to a legitimate cryptocurrency.
DOGE’s unique community-driven approach sets it apart from other cryptocurrencies. The Dogecoin community has been known for its philanthropic endeavors, such as fundraising for the Jamaican Bobsled team to attend the 2014 Winter Olympics and raising funds to build a well in Kenya’s Tana River Basin. These charitable acts amplified Dogecoin’s media presence and attracted more users.
Over the years, as the crypto universe expanded, Dogecoin began to face competition. Besides Bitcoin, which has always been the crypto industry’s leading figure, altcoins (alternative coins to Bitcoin) like Litecoin, Ripple, and Ethereum emerged as significant competitors. However, Dogecoin’s real competition came in the form of other meme coins.
Shiba Inu (SHIB) is one such competitor. Introduced in August 2020, it was dubbed the “Dogecoin killer.” Much like Dogecoin, Shiba Inu was inspired by the Shiba Inu dog and started as a meme. Its immense supply (1 quadrillion tokens) and low price made it an attractive option for investors looking for the next big thing. While Dogecoin’s rise was more gradual, SHIB’s growth was meteoric, with massive spikes in value during 2021, attracting both enthusiasts and skeptics alike.
Other notable MEMEs
Other meme-based tokens also emerged, such as SafeMoon, Kishu Inu, and Doge’s distant cousin, Dogelon Mars. Each brought its flavor and community to the meme coin arena. While they capitalized on the momentum Dogecoin created, they also diversified the meme coin market.
In conclusion, Dogecoin’s journey from a simple internet joke to a significant cryptocurrency is a testament to the unpredictable nature of the digital currency landscape, prompting many to search for how to buy DOGE. Its community-driven ethos, combined with a touch of humor, ensured its resilience in a competitive market. As newer meme coins emerge, they not only challenge Dogecoin’s dominance but also pay homage to the trail it blazed in the meme coin universe.