Oct 12, 2024
6thTrade
Short-term trading activity plays a crucial role in shaping the dynamics of meme coins, which thrive on hype and shifting market sentiment. At the forefront of this trend is Dogecoin (DOGE), a top pick among traders drawn to its volatility and potential for quick gains.
According to recent insights from the on-chain analytics platform IntoTheBlock, DOGE has attracted a whopping 110,000 short-term traders over the past week. This influx comes as DOGEâs price shows renewed strength, with the token aiming to break past a key resistance level at $0.109. $DOGE
Crypto analyst Ali Martinez has highlighted a familiar pattern in DOGEâs price history, which could hint at whatâs next for the meme coin. In previous cycles, DOGE broke out from a multi-year descending triangle pattern, soared by 200%, then saw a 60% pullbackâultimately setting the stage for a substantial bull run. Recently, DOGE experienced a 65% pullback, which aligns closely with past cycles. This suggests DOGE might be gearing up for another major rally, mirroring its previous bullish trends.
Significant activity among DOGEâs active addresses further reflects investor optimism and potential bullish momentum.
DEGEN and Other Contenders Close Behind
In the meme coin world, Degen (DEGEN) has emerged as a notable contender, closely trailing behind Dogecoin. IntoTheBlock reports that DEGEN has attracted around 23,000 short-term traders over the last seven daysâan impressive figure that matches Shiba Inuâs (SHIB) numbers, despite DEGENâs market cap being only 10% of SHIBâs.
This contrast underscores the strong speculative interest in DEGEN. Similarly, Pepe (PEPE) has drawn around 19,000 short-term traders, showcasing the communityâs enthusiasm for these smaller meme coins.
Meanwhile, mid-sized meme coins like Coq Inu (COQ), Turbo (TURBO), Mog Coin (MOG), and MAGA (TRUMP) have seen a noticeable drop in trader activity this past week. IntoTheBlock data indicates that these coins are averaging around 4,000 short-term traders, illustrating a significant gap in engagement levels compared to leaders like DOGE and DEGEN.
As the meme coin market continues to evolve, short-term traders are playing an increasingly influential role in driving the trends and narratives behind these high-risk, high-reward tokens.
Disclaimer: The content of this article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile and may lead to substantial financial loss. Always perform your own research and consult a qualified financial advisor before making any investment decisions. The opinions expressed are solely those of the author and do not represent the views of the publisher or its affiliates. Investing in cryptocurrencies involves inherent risks, and past performance is not a reliable indicator of future results. Please exercise caution.
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