Journalist
Posted:
Key Takeaways
Why is DOGE outperforming other memecoins?
Despite a 20% market pullback, DOGE is up 9%+, with bulls defending its key support since June.
What’s driving DOGE’s potential upside?
Whales are strategically stacking, tightening supply, and reinforcing its technical base.
The memecoin market hasn’t escaped the broader market’s latest downturn.
In just under 10 days, the market cap slid by 20% from its $83 billion peak, shaving off nearly $18 billion. In fact, most high-cap memes are now well below key support zones, looking oversold and ripe for further bleed.
Dogecoin [DOGE], meanwhile, is holding the line. While other legacy memecoins like Shiba Inu [SHIB] are down 3% this month, DOGE is up 9%+, closing its fourth straight monthly higher at $0.22.
Source: TradingView (DOGE/USDT)
Simply put, despite the wider sell-offs, bulls have defended its key support.
Since June, DOGE has closed each month at a higher high, reinforcing its structural strength. In this context, the $0.22-level has held firm, giving bulls a clear base to potentially push towards the next resistance.
Interestingly, DOGE has historically closed October in the green. On average, the last four Octobers have delivered 50%+ gains. Hence, the question – Could we be looking at $0.35 as the target for DOGE’s next monthly ceiling?
On-chain strength backs DOGE’s technical base
DOGE’s largest whale cohort has been actively squeezing supply lately.
In Q3, whales holding (100 million – 1 billion) DOGE stacked about 5 billion more tokens, taking their total to 28.85 billion – Almost equal to the combined holdings of the next two whale cohorts.
Sure, that’s only 20% of DOGE’s 150 billion supply. However, this concentrated accumulation can have an outsized impact on the price, tightening available supply and reinforcing structural support.
Source: Santiment
Case in point – DOGE hit $0.27 in mid-September, unlocking about $1 billion in realized gains. The price action stayed tame though, as whales stacked nearly 2 billion coins during the same stretch.
In short, smart money is tightening supply, reinforcing its technical base.
With such a setup, DOGE may be on track to close October with a fifth higher high for H2, eyeing $0.35 as the next target. If it sticks, it could set the stage for a bullish Q4, potentially leading to further gains towards the end of the year.