- The social dominance of DOGE and SHIB has declined over the past week.
- Dogecoin could begin a rally again if it breaks key resistance.
Memecoins as a whole have reached a major milestone in terms of market capitalization, although they have been criticized for their uselessness. The coins, coupled with hype and market trends, now boast a market cap of $140 billion.
Therefore, AMBCrypto investigated the performance of the top memecoins to determine the cause of this increase.
A look at memecoins
Speaking of memes, it’s inevitable that Dogecoin (DOGE) And Shiba Inu (SHIB) don’t come. The world’s largest memecoin, DOGE, exhibited impeccable performance last month with a whopping 126% price surge.
This massive rise allowed DOGE to gain 7th place on the list of cryptos by market capitalization.
Shiba Inu’s price action has also remained bullish, with the memecoin’s price surging more than 65% in the past month, making it the 13th largest crypto. However, despite these huge numbers, the market sentiment around the two memecoins has changed.
Santiment data revealed that DOGE and SHIB saw a decline in social dominance, reflecting a decline in popularity. On top of that, their weighted sentiment has also fallen significantly – a sign of growing bearish sentiment.
Source: Santiment
Besides the massive price rise of the top 2 memecoins, Solana (SOL) also played a role in the rise of memecoin dominance.
Blockchain has recently seen an influx of several meme-based coins, several of which have captured considerable market capitalizations. For example, Dogewhat (WIF) And Bonk (BONK).
IIn fact, it was interesting to note that while DOGE and SHIB were consolidating, the price of BONK jumped 5% in the last 24 hours.
As the memecoin industry gains traction, new competitors have arrived that can challenge Solana. Coinbase’s BASE has joined the memecoin frenzy by launching several meme-based coins in the recent past.
BRETTbeing the best memecoin BASE, registered a massive price increase of 128% in the last 30 days.
What to expect from DOGE and SHIB?
Since the two major meme-based coins have seen a drop in volatility, AMBCrypto evaluated their daily charts to find what to extract from them. Starting with DOGE, a bullish ascending triangle pattern has formed on the memecoin chart.
At press time, it was testing the pattern’s strength, and a breakout could trigger another bull rally. The possibility of this happening was high as the Chaikin Money Flow (CMF) recorded a slight rise, a sign of increasing buying pressure.
Source: TradingView
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Unlike DOGE, buying pressure on SHIB was decreasing, as evidenced by the decline in the Relative Strength Index (RSI).
Nonetheless, the MA crossover indicated that the 9-day MA was higher than the 21-day MA, giving the bulls a chance to continue dominating the market.
Source: TradingView
