Dogecoin Surges as Institutional Investors Join the Memecoin Craze

Dogecoin (DOGE), the Shiba Inu-themed meme coin, is experiencing a price increase alongside other major cryptocurrencies as investors react to a weaker private sector jobs report in the US. While Bitcoin surpassed $71,000 and Ethereum climbed above $3,850, DOGE rose by a modest 1.08%, reaching $0.1631.

Institutions Embrace the Meme

A recent report by crypto exchange Bybit revealed a surprising trend: institutional investors are actively investing in meme coins. Between February and March, their holdings in DOGE, Shiba Inu (SHIB), and Pepe (PEPE) surged by a staggering 226%, reaching $204 million. While they scaled back in April, their continued allocation showcases a calculated risk-taking approach to capitalize on these volatile assets.

DOGE Tops the Charts for Meme Coin Holdings

Dogecoin remains the most popular meme coin among both institutions and retail investors. It represents 36.17% of institutional meme coin holdings, followed by PEPE and SHIB. This dominance may be due to DOGE’s longer history, higher liquidity, and relative stability compared to other meme coins.

Retail Investors Jump on the Bandwagon

Retail investors haven’t been left behind. Bybit’s report highlights a 478% increase in their meme coin holdings between February and April. However, mirroring institutional behavior, they too offloaded a significant portion during the market downturn. Notably, retail investors seem to favor Ethereum-based meme coins like PEPE and SHIB.

Dogecoin’s Technical Outlook: A Bullish Wedge Pattern

DOGE is currently trading in a rising wedge pattern, which can indicate a potential breakout in either direction. Analysts at altFINS believe a bullish breakout could push the price towards $0.20, while a bearish breakout could lead to a decline towards $0.12.

Dogecoin Price Predictions by Analysts: Bullish or Bearish?

Analyst opinions on DOGE’s future vary. While altFINS maintains a neutral stance, analyst JAVON MARKS is optimistic, predicting a continuation of the uptrend and a potential price increase exceeding $10. Crypto Kinfolk, another analyst, paints an even rosier picture, suggesting a “mind-melting bull run” with a target of $12 based on historical performance.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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