Breaking: Will DOGE Survive The Ongoing Evolution Of SHIB And BONK?

• The collective valuation of the meme coin market rose by more than 4% in the past day of trading.
• DOGE was not the biggest contributor to this feat as its price only rose by 0.51% since yesterday.
• Technicals on DOGE’s chart suggest that the meme coin could face price drops in the coming days.

The meme coin market saw its collective valuation rise by 4.42% over the past 24 hours, according to CoinMarketCap data. Subsequently, the total market cap for meme coins stood at above $24.128 billion.

Dogecoin (DOGE), the largest meme coin by market cap, saw its price rise 0.51% over the past 24 hours. Its competitor, Shiba Inu (SHIB), was not able to post a gain during the same period. CoinMarketCap data showed that SHIB was down 1.46%, bringing its price down to $0.000009907 at press time.

It was Bonk (BONK), however, that was the best-performing meme coin on the top 10 meme coins list. The Solana-based altcoin surged more than 102% throughout the past day of trading, which also pushed its weekly performance to over 144.46%. Looking at the weekly performance, BONK was the fourth-best performer in this time frame as well.

Given the strong performance by BONK, supplemented by the growing hype surrounding the SHIB ecosystem, and its layer-2 network Shibarium, DOGE may be forced to take dramatic action in the near future. Should DOGE’s somewhat inadequate fundamental and price performances continue into the new year, it may only be a matter of time before DOGE loses its top spot.

Nevertheless, DOGE still has a comfortable lead in terms of market cap, as it benefits from a first-mover advantage over other up-and-coming meme coins. At press time, DOGE’s market cap stood at $17.723 billion. This was almost three times more than that of SHIB, whose valuation was estimated to be $5.834 billion.

Despite the strong weekly and daily performances, newcomer BONK had a lot of work to do to contend with the likes of SHIB and DOGE. CoinMarketCap showed that BONK’s collective market cap stood at $1,809,808,138 at press time.

From a technical perspective, a positive price channel formed on DOGE’s daily chart over the past 3 weeks after the meme coin printed a series of higher lows and higher highs during this period. The altcoin’s price had fallen below this channel in the last 5 days but is seemingly attempting to re-enter the ascending channel at press time.

If DOGE can close today’s daily candle within the positive price channel, then bulls may step in to drive the cryptocurrency’s value up in the following few days. This potential buy pressure could lead to DOGE rising to as high as $0.10735, and potentially flip the level into support as well.

Thereafter, a daily candle close above this significant mark may clear a path for DOGE to rise to the subsequent resistance level. This could lead to DOGE climbing to $0.12855 within the following week.

This bullish thesis could be invalidated if DOGE closes today’s trading session below the positive price channel. In this more bearish scenario, the meme coin could fall to $0.08965 in the coming couple of days. Continued sell pressure could also drag DOGE to as low as $0.08270 in the short term.

Technical indicators on the meme coin’s chart suggested that a bearish scenario is more likely to play out. Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) indicators signaled that buyer strength was diminishing. 

Not only was the RSI line positioned bearishly below the RSI Simple Moving Average (SMA) line, but the MACD indicator was on the verge of triggering a significant bearish technical flag as well. At press time, the MACD line was looking to cross below the MACD Signal line. These two technical indicators intersecting in the next 24 hours may be indicative of a short-term bearish trend reversal for DOGE.