If Dogecoin continues on its current trend and forms a higher low, it’s likely to record major gains, but it can’t hit the 10x gains it once did due to market cap restrictions, says one analyst.
However, it’s time to dump your Avalanche bags as the Ethereum competitor is about to dip by over 20% to trade around the $16 level, he adds.
Dogecoin was once the hottest crypto in the market and just a single tweet would send the memecoin’s market cap up by billions of dollars. The market has matured since and the gains are more modest. And while it has lost its momentum, one analyst says it might be the right time to purchase the memecoin.
The pseudonymous trader who goes by Altcoin Sherpa on social media platforms noted that DOGE has been making “interesting moves” in the past few days. Dogecoin is trading at $0,008, having gained 2.8% in the past day, and the analyst says, “This is a key level.”
“If we see that [and]a higher low formed, I think we see a bullish market structure,” he added.
Despite the bullish outlook, DOGE is no longer the explosive investment it once was, he says.
That said, I still don’t think DOGE is as good as it was in previous cycles due to [market cap]. Would probably look for other memes down the risk curve.
DOGE’s market cap currently stands at $11.4 billion, making it the ninth-largest crypto in the market. The crypto set its record high in mid-May when it hit $75 billion. This was the year when every other crypto was setting new highs, with Bitcoin hitting $68,000 later that year. As this analyst admits, Dogecoin is unlikely to break this record, with the smaller altcoins with a much smaller market cap more likely to give the 100x gains.
Avalanche to Tank, Says Trader
While Altcoin Sherpa is bullish for DOGE, he believes Avalanche will tank in the short term. The crypto has been on a tear in the past month, notching 25% in gains to hit its highest level since August last year.
The trader says that the current price is a key level and rather than keep on gaining, the crypto is likely to dip after hitting these new heights.
AVAX: really key level for this one in my opinion. I don’t see AVAX holding it unless Bitcoin (BTC) looks better. Not saying to short, but I think this current level seems important. Expecting a bit lower personally, like $16.
Despite the bearish outlook, Avalanche continues to attract businesses to its blockchain network. Recently, Republic, the blockchain fundraising platform, selected Avalanche to issue its upcoming token.
Known as Republic Note, the new token is gaining interest from investors and has reportedly raised over $30 million in pre-sale funding. Republic says it selected Avalanche for its advanced features including its subnets which participants can customize to their liking.
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