DOGS Price Recovery Begins Despite Airdop, Sell On Rise?

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As a seasoned researcher with a knack for deciphering market trends and a penchant for observing the intricacies of the crypto world, I find myself intrigued by the DOGS token’s recent price recovery. Having navigated through numerous bull runs and bear markets, I can sense the undercurrents of excitement and uncertainty that characterize this dynamic market.

Following a significant drop in value during the last seven days, the digital currency DOGS (based on the TON platform) is experiencing a rebound, rising by approximately 15% and reaching $0.14. Despite recent events concerning Telegram, the TON-based cryptocurrency has been subjected to strong selling activity, causing the price of DOGS to decrease by around 17% over the same period.

Will DOGS Price Recovery Continue?

The altcoin has gained significant attention lately, primarily due to its recent listing on Binance, causing a substantial 124% increase in its value. At the moment of writing, DOGS is trading at a 2.69% rise, with a price of $0.00133 and a market capitalization of approximately $672 million.

Over the last week, the price of Dogs (DOGS) has displayed significant fluctuations. This instability is reflected in the liquidation data as well. In just the past day, a total of approximately $2.37 million worth of DOGS positions have been liquidated. Specifically, long positions amounting to $1.23 million were closed, while short positions accounted for $1.13 million. This indicates that both the bulls and bears are actively engaged in a struggle at present. Additionally, the open interest in DOGS has surged by 8%, reaching over $140 million.

On the flip side, one potential drawback associated with owning DOGS is the ongoing increase in its market supply. To date, over 150,000 Notcoin users have been awarded a collective total of approximately 2.75 billion DOGS tokens, equivalent to around $3.3 million. The distribution of these tokens was based on each user’s level of engagement and activity; those who were more active received larger rewards. Moreover, this token distribution offered recipients the opportunity to delve into various pools and take advantage of other exclusive perks.

Here’s Why CEXs Promoting DOGS Is Wrong

As an analyst, I’m highlighting my concerns about the recent promotional activities surrounding the DOGS token on centralized exchanges (CEXs). It’s worth noting that a significant portion, approximately 8.55%, of the total DOGS supply, valued at around $60 million, has been acquired by these exchanges without any lockup period. The expectation is that they will aggressively promote the token for a few weeks. However, given their history, it’s reasonable to assume that these exchanges may soon liquidate their holdings of DOGS.

Apart from casting criticism, Leonidas also accused the Cryptocurrency Exchanges (CEXs) for actively participating in the manipulation of the Dogecoin token’s price, a practice known as “pump and dump.” He further questioned the moral compass of these trading platforms. In his opinion, if these exchanges genuinely prioritized their users, they would choose superior tokens for their customers to invest in, rather than exploiting them by providing exit liquidity to inflate the Dogecoin price artificially.

Speaking about the status of meme-based cryptocurrencies, Leonidas noted that despite being listed on significant exchanges, Dogecoin ($DOGS) has managed to achieve a market capitalization of just $700 million. He expressed his dismay over this figure, suggesting that other meme coins with comparable support would have swiftly exceeded a market cap of $2 billion.

I swear I am not making this up I have never seen someone other than a CEX post about $DOGS
It’s basically a form of culturally acceptable pumping and dumping
The equivalent of 8.5% of the total $DOGS supply, amounting to approximately $60 million, was distributed to the CEXs. It appears there’s no lockup on these tokens, and it’s understood that they would…
— Leonidas (@LeonidasNFT) August 31, 2024

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2024-08-31 13:57