Dogecoin is Severely Underperforming New Memecoins This Year — Sho… | EVM News

LUCKNOW (CoinChapter.com) — Early 2024 saw a brief Dogecoin rally, with its price doubling from late 2023 to peak around $0.20 in March. However, this was short-lived as DOGE tumbled back towards $0.16 by May, far below its all-time high of over $0.70. 

While Dogecoin floundered, several new memecoins emerged in 2024 with impressive performances. BONK, the first dog-themed coin on Solana, revived interest in its DEXs through its community approach. Shiba Inu (SHIB), often called the “Dogecoin killer,” strengthened its position through the Shibarium integration. PEPE, leveraging the popular Pepe the Frog meme as a deflationary Ethereum token, saw massive price surges. All of these memecoins outperformed DOGE since the beginning of this year.

Why is Dogecoin Underperforming?

Several key factors contributed to Dogecoin’s underwhelming 2024 performance.

First, its high market cap requires substantial new investment for price appreciation compared to low cap new memecoins. Second, new projects offer utility like P2E gaming and staking beyond mere speculation.

Third, speculative Dogecoin futures trading led to increased volatility and potential sharp corrections. Finally, competition from promising new memecoins with dedicated communities attracted investment away from DOGE.

Should You Still HODL DOGE?  

The current Dogecoin (DOGE) chart forms a bearish pattern and shows a continuing downtrend. The resistance is consistently tested around the $0.17 to $0.18 range, successfully preventing the price from rising further each time.

On the other side, the lower trendline provides support around the $0.12 to $0.13 level, preventing further declines. This pattern suggests that unless there is a breakout, the price will likely continue to oscillate within these bounds.

The decision to hold or sell Dogecoin requires weighing its pros and cons carefully. On the positive side, DOGE maintains a loyal community that provides support and potential positive catalysts like Coinbase DOGE futures listings could drive renewed interest. However, the cons include severe underperformance versus new meme tokens, high volatility making it difficult to achieve major gains at such a large market cap, and stiff competition from innovative new memecoins with better short-term prospects.

However, High volatility and a $1.4 billion futures open interest point towards speculative over-optimism.

While Dogecoin’s legacy persists, 2024’s trends suggest diversifying into new memecoins presents a better risk-reward scenario. Newer projects like BONK and SHIB combine meme appeal with utility like gaming and staking, fueling rapid growth. However, you should do thorough research before making any investment in the highly speculative memecoin market.