Cardano faces downturn as Dogecoin surges – Race to $1 begins

Cardano’s downturn vs Dogecoin’s resurgence – Who will hit $1 first?

The race to achieve the significant $1 milestone remains a classic storyline in the realm of digital currencies. Notably, prominent entities like Cardano [ADA] and Dogecoin [DOGE] are still striving to surpass this important threshold.

While ADA has previously breached this level, DOGE continues to lag behind, despite receiving endorsements from influential figures. The pivotal question arises: who will be the first to reach the coveted $1 mark?

Cardano Confronts Bearish Trends

Recent price movements for ADA indicate a potential further downturn, especially as a bearish MACD crossover emerges on the daily chart, signaling a probable reversal in trend direction.

The coin’s value recently tested a critical support level at $0.3261, which aligns with the 100% retracement level of the Fibonacci sequence. Should this support falter, ADA might drop to approximately $0.319.

To regain a bullish trajectory, Cardano must surpass the $0.37 mark; however, the existing market sentiment shows a lack of significant buying pressure.

An analysis from a recent CryptoCrypto report underscores the fluctuations in the derivatives market surrounding Cardano, with traders choosing to bet against ADA – a move that seems rational given the current circumstances.

With nearly 80% of ADA holders currently at a loss, the absence of strong bullish backing could shake their trust, potentially triggering a round of sell-offs.

Nevertheless, if ADA manages to secure a boost and rises to $0.35, approximately 120K addresses holding around 2 billion ADA tokens may opt to sell after locking in profits.

In essence, Cardano’s performance is closely linked to broader economic factors that could propel BTC above $70K, potentially diverting liquidity from Bitcoin to ADA.

Despite this, the long-term outlook for ADA appears pessimistic, dampening its chances of hitting the $1 mark in the immediate future.

Is Dogecoin Poised to Hit the Target?

A separate report from CryptoCrypto revealed that DOGE is breaking out from a descending channel, exhibiting bullish signals in key metrics, with a noteworthy surge in open interest backing this development.

Ultimately, the short-term forecast for DOGE looks optimistic, with a potential surge to $0.148, a historically substantial resistance level. During the previous cycle, Dogecoin outperformed many of its competitors, maintaining its strength even as cat-themed tokens gained traction.

This implies that, despite the rise of memecoins in the market, Dogecoin’s established reputation positions it as a more formidable contender compared to Cardano.

Nevertheless, uncertainties persist regarding DOGE’s long-term outlook. While it outshines ADA across different time frames, the mounting competition from other digital assets should not be disregarded.

Remarkably, two newer memecoins, namely POPCAT and WIF – one eight years and the other ten years junior to Dogecoin – have both reached the $1 milestone within five years, with POPCAT even outperforming major memecoins with weekly gains exceeding 10%.

In conclusion, while Dogecoin solidifies its place as a prominent legacy meme coin, it lacks genuine utility. Conversely, the recently launched memecoin GOAT could potentially hit $1 by the end of Q4, boasting a weekly surge of over 80% and approaching a $1 billion market cap.

Overall, as Cardano and Dogecoin navigate through challenging market conditions, newer coins like POPCAT and GOAT are emerging as frontrunners, complicating the path for the established coins to reach the significant $1 mark.

 

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