Short-term trader activity is a major factor in the momentum of meme coins, which are largely driven by hype and market sentiment. Leading the way is Dogecoin (DOGE), the coin with the highest number of short-term traders in the cryptocurrency space.
DOGE Emerges as the Favorite Coin Among Traders
According to the latest findings from on-chain analytics platform Intotheblock, DOGE has attracted 110,000 short-term traders over the past seven days. This comes amid a sharp rebound in the price of the meme coin as the token attempts to break above the resistance level of $0.109.
Additionally, crypto analyst Ali Martinez also pointed out an interesting historical pattern in DOGE's price action, suggesting that history may be repeating itself. Martinez said that Dogecoin previously experienced a breakout from a multi-year descending triangle, followed by a 200% rally and then a 60% retracement, which eventually led to a significant rally.
DOGE recently experienced a 65% retracement, in line with a familiar pattern seen in previous cycles. This could indicate that the meme coin is once again gearing up for a potential major rally, mirroring previous bullish trends.
Significant activity in DOGE active addresses also signals investor optimism.
DEGEN Follows DOGE
Notably, Degen (DEGEN) also emerged as a prominent contender, trailing closely behind the OG meme coin. ITB data shows that the coin attracted around 23,000 active short-term traders during the same period, a figure comparable to Shiba Inu (SHIB) despite DEGENâs market capitalization being just 10% of the second-largest meme.
This stark contrast highlights the strong speculative interest in DEGEN. Pepe (PEPE) also saw similar sentiment with around 19,000 short-term traders.
Meanwhile, other mid-sized meme coins â Coq Inu (COQ), Turbo (TURBO), Mog Coin (MOG), and MAGA (TRUMP) â have seen a significant drop in trader engagement over the past week. In fact, ITB data shows that many coins have an average of around 4,000 short-term traders, indicating a significant gap in activity compared to DOGE and DEGEN.
