Dogecoin to $0.25? The One Chart That Proves It Won't Last

Dogecoin hitting $0.25? Now it looks like everyone’s an overnight crypto expert. You’re reading all the headlines, catching the tweets, hearing about the meme-mentum driving the Lambo dreams. Before you go remortgaging your house to purchase DOGE, wait up. Now let’s dig into the one chart that’s waving a big red flag and yelling, “This party’s about to end!

Volume Tells a Different Story

I’m not writing this to lecture you about how you should spend your money. I’m sorry to be the one to tell you, but following the hype blindly is a sure fire way to ruin everything. Dogecoin recently blasted past $0.20, and the energy is palpable! With cheers still ringing in the air, technical analysis suggests more gains lie ahead, particularly following that 200-day EMA breakout. $0.25 is the target, they say.

Look at the volume. It's tapering off. A classic bearish divergence. Even though price is creating higher highs, the buy demand behind it is weakening. It’s akin to a racehorse galloping to the finish, with the horse now having pulmonary failure. They may succeed, but they’re equally likely to fail spectacularly.

Here's the one chart that should give you pause: a candlestick chart of DOGE/USD over the last few weeks, with volume bars displayed prominently at the bottom. Just see how the last three price surges are all on lower volume than prior rallies. This isn't organic growth; it's artificial inflation.

Think of it like this: imagine a balloon. You can just continue to pump air into it, and it will just continue to grow. But sooner or later, it’ll get to the point where the rubber can’t stretch any further, or the air pump runs out of juice. Then pop. That's Dogecoin's chart right now. But that air pump is starting to run out of steam.

Let's be brutally honest: Dogecoin's "strength" is built on memes and tweets.… I do enjoy a meme by the way, just like the rest of you. It’s a different sort of Wall Street wisdom that would have you base your investments off of memes and TikTok trends.

Meme Magic or Market Manipulation?

The meme coin narrative is powerful, sure. But it's easily exploitable. Sophisticated traders know this. They stage their purchases to drive up value and create buzz. Then, they dump their newly acquired cheap tokens on the latecomers retail investors who are just now showing up. Leaving them holding the bag.

Remember GameStop? The same principles apply. Then a wave of excitement, amplified by social media, turns this into a meteoric rise in price over time. It’s the early birds that catch the worm, and the late arrivals that are doomed to death.

The annual VWAP capped at $0.25 Sure, it's a level to watch. VWAP is just another indicator. It’s not a fool-proof wall either to block you in case the market takes its inevitable correction. Considering the unprecedented amount of leverage in today’s market, a correction is inevitable and we will likely suffer for the excesses.

Picture this, we’re being told every day that this crypto world is the future, this is the decentralized revolution. What does Dogecoin actually do? It's a cryptocurrency with limited utility. Next to blockchains that have well-developed DeFi ecosystems, smart contracts and interoperability solutions, Dogecoin is a digital pet rock.

Beyond Hype: What About Real Value?

It hardly matters that it is the most exciting and entertaining digital asset to be traded on the market. Nothing more.

And while we’re on the topic of interoperability, let’s touch on cross-chain tech for a moment. Those projects making real-world bridges between the various ecosystems are the ones doing the real world building and solving actual, real-world, practical problems. They're the ones that are creating value. Dogecoin Come on—it’s only benefitting from the hype cycle.

You’ll often read about “alternatives” such as Solaxy ($SOLX). This Layer 2 scaling solution, developed on top of Solana, looks to ride the meme coin wave but with actual utility. They’re making efforts to be more than a meme. The presale success paired with staking rewards are a tempting combination. At the end of the day, a shiny new coin is still a coin.

Don't get me wrong. Innovation in the crypto space is great. But don't confuse innovation with hype.

The $SOLX token presale recently passed $34.4 million in the amount raised. The biggest question is how much faith do you have in the new regime.

These replacements or alternatives to Doge aim to strike the balance of meme appeal while having legitimate, functional use cases. Remember, they are not immune to market volatility and the whims of the crypto gods.

I understand the allure of quick profits. I get it. Investing in Dogecoin based on hype and speculation entirely is like playing Russian roulette with your investments.

So, while these "alternatives" try to blend the meme appeal with actual use cases, remember that even they are subject to market volatility and the whims of the crypto gods.

I understand the allure of quick profits. I get it. But investing in Dogecoin based solely on hype and speculation is like playing Russian roulette with your money.

Don't be the last one holding the bag.