Memecoin price rallies are driven primarily by sentiment and communities. There is a long way to go for Dogecoin to rival the top L1 blockchains and display utility and adoption, and hence support calls for a $10 price tag.
Dogecoin [DOGE] was sinking toward the short-term support at $0.212 once again. The leading memecoin has a market capitalization of $32.24 billion, making it the 9th largest crypto asset.
With a circulating supply of 150 billion tokens, a $10 price target was ambitious to say the least.
At the time of writing, Bitcoin [BTC] had sunk below the $110k mark. Trading at $109.8k, Bitcoin showed a loss in bullish market sentiment that was being reflected across the crypto market.
Hence, in the coming weeks, Dogecoin bulls might struggle to make strong progress.
To start, it needs to end the current cycle strongly. Since April 2021, Dogecoin has been unable to climb past the $0.57 level.
This was an important level on the weekly chart, marking the weekly close in May 2021.
In a post on X, user GalaxyBTC noted that Dogecoin had broken a key trendline resistance and was consolidating. In the past, this has been followed by an explosive rally that has reached new all-time highs.
Another user opined that the leading meme’s time to shine would be in October, but a retest of the $0.19 level could come before that. If Bitcoin continues to fall toward $100k, this might come to pass.
The previous cycle saw Dogecoin set an all-time high at $0.7316. The price was 70% down from that point. However, a $1 target seems reasonable for this cycle, taking the memecoin’s market cap to $150 billion.
Even if we fast-forward four years, when the next cycle might be nearing its top, a $10 target appears ambitious.
It would take DOGE to a market cap of $1.5 trillion, thrice the current market cap of Ethereum [ETH].
This would require an enormous jump in on-chain activity, utility, and, combined with institutional adoption. Ethereum was dubbed the “Wall Street” token recently, since it holds a competitive advantage as a blockchain.
If Dogecoin can manage to rival that kind of adoption, a $10 price tag might be feasible, but as things stand, it does not appear likely.
As the data from Santiment shows, there was an enormous gap in network activity that needs to be bridged.
