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Dog-themed cryptocurrency Dogecoin (DOGE) has seen a price surge of more than 11% in the last day.
At the time of writing, Dogecoin was up 9.35% in the last 24 hours to $0.1344 and 25% weekly. This is significant, as several cryptocurrencies posted mild gains or even losses daily.
Bitcoin and Ethereum were up less than 1% in the last 24 hours, and some crypto assets were posting mild gains, while others lost up to 5%.
A handful of meme coins, on the other hand, were thriving. Dogecoin led the way with a 10% increase, while Shiba Inu, Floki and MEW were all up almost 5%.
Recent analysis from on-chain analytics platform Santiment shares insight behind this surge. In its recent tweet, Santiment noted that there was a major increase in meme coin discussions, as coins like Dogecoin and Bonk were surging.
📉 There was a major increase in memecoin discussions yesterday as coins like Dogecoin and Bonk were surging. Typically, markets correct when focus shifts away from layer 1's and toward more speculative assets due to greed. Today, unsurprisingly, market-wide dips are occurring. pic.twitter.com/ACzHo7TsTY
— Santiment (@santimentfeed) October 17, 2024
The increased discussion in the community around meme coins occurred as the market switched its focus away from layer-1 assets, or major cryptocurrencies, such as Bitcoin and Ethereum. This has an implication: meme coin high social dominance foreshadows cryptomarket tops. On the other hand, high layer-1 interest foreshadows market bottoms.
Santiment noted that markets typically face a correction when the focus shifts away from layer-1 blockchains and onto more speculative assets due to greed. "Today, unsurprisingly, market-wide dips are occurring," Santiment added, hinting at the implications of this focus shift.
What's next for Dogecoin's price?
Dogecoin has been on a tear over the previous five days, on track for its fifth day of gains since Oct. 14. Dogecoin initially began to rise after hitting support around $0.102 on Oct. 10.
Dogecoin's rise has surpassed the daily SMA 200 at $0.1294, a level that has slowed DOGE's growth since April. Bulls' attempts to decisively breach this important level in May and July were met with bearish resistance.
In the following days, the market will be looking for a decisive break above this level, which would signify the start of a new upswing. In this scenario, Dogecoin may rise to $0.14, then to $0.17, with a target price of $0.19.
The daily moving average of 50 at $0.108 is expected to provide significant support if profit-taking occurs.