Dogs token faces pump-and-dump allegations amid volatile market action.
NOIDA (CoinChapter.com)— DOGS, the newest memecoin based on the Ton blockchain, has quickly become a focal point of market activity following its airdrop and subsequent exchange listings. The token suffered from high volatility during its early days as traders and investors speculated on its future.
The DOGS token benefitted from initial market hype, driving its price to new highs before the inevitable correction. The token’s introduction coincides with the broader market’s optimistic outlook, especially with an anticipated Federal Reserve rate cut on the horizon.
Reducing interest rates could inject additional liquidity into the market, potentially boosting DOGS prices as investors seek higher returns in riskier assets. Moreover, the DOGS meme coin’s presence on major exchanges like Binance, OKX, and KuCoin adds credibility and liquidity to the token.
These factors combine to create a bullish environment for DOGS in the short term, as market dynamics and external economic conditions align in its favor.
Pump-and-Dump Fears Loom Over DOGS Token’s Future
Despite the initial hype, concerns are growing within the DOGS community about the token’s future. A tweet from crypto commentator LeonidasNFT sparked fears of a potential pump-and-dump scheme, with centralized exchanges (CEXs) allegedly holding 8.5% of the DOGS token’s supply (around $60 million) without any lockup period.
This raises the risk that CEXs could inflate DOGS’s price only to sell off their holdings later, disadvantaging retail investors.
Will the DOGS project fall victim to a pump-and-dump scheme?
Additionally, the large volume these exchanges control means any sudden sell-off could trigger a wave of panic among other investors. Seeing the risk of a downturn, early holders might decide to lock in profits while they can, which would only increase the selling pressure.
The scenario is particularly concerning given the volatility in new tokens like the DOGS meme coin. The potential for profit-taking adds another layer of risk that could lead to a significant drop in the token’s price.
Another concern is the lack of clear communication from the DOGS development team. Investors are left guessing about the token’s long-term prospects without transparency or a solid roadmap. This uncertainty can cause hesitation, making it harder for DOGS to sustain its recent gains.
These factors could cast a long shadow over DOGS’s future. Investors might need caution as these issues could increase volatility and potential losses in the near term.
DOGS Price Action Remains Horizontal
The DOGS USD pair plummeted following its listing on Binance on Aug. 26, giving quite a heart attack to many traders. However, the memecoin subsequently recovered and closed the day with 42.62% gains on the Gate.io exchange.
DOGSUSDT price chart with RSI. Source: Tradingview
However, the DOGS USD trading pair failed to convert its Aug. 26 recovery into a rally. Hence, the token is facing bearish pressure near the $0.002 price mark.
DOGS, the newest Ton-based memecoin, spiked by nearly 3% on Aug. 31 to reach a daily high near $0.00138. If the uptrend fails, the next key support level around $0.00067 could come into play.
A failure to hold this support might push DOGS token price down further, potentially testing the $0.0033 support zone before any recovery.
Conversely, if bullish momentum builds, DOGS could rally toward the resistance at $0.00214. Breaking and consolidating above this level might pave the way for a move toward the next major resistance at $0.0049.
The relative strength index (RSI) for DOGS remains neutral, registering at 34.7 on the daily charts, indicating that the token is neither oversold nor overbought.
The post Dogs Token is Live! Where Will Its Price Go in Sept. 2024? appeared first on CoinChapter.
