Dogs, a Telegram based meme coin shows signs of recovery after it experienced a 20% price drop last week. Its price fall could have been part of the broader market trend. The token has gained much traction over the past weeks. The arrest of the Telegram founder, Pavel Durov, could have contributed to the prominence of DOGS. Despite the initial hype and optimism the token has entered a bearish phase.
The DOGS 20% price fall within one week comes a few days after the activation of on-chain withdrawals. That feature enabled eligible Telegram users to access their airdrops. Recently, the token experienced a round top price pattern that indicates seller dominance. Within the broader market most major coins were in dips. At that time, Bitcoin was trading below $59,000 BTC/USDT. On the other hand, ETH was selling at around $2,500. Also, most meme coins were in red.
Within the last 24 hours Dogs gained by 7.5% to trade at $0.001 DOGS/USDT. Overall, though, it has lost value by 24.5% within the past 14 days. The following graph shows how the Telegram- based token has been performing within the past weeks.
Dogs Price Action – CoinGecko
As observed on the graph, DOGS meme coin has been in a downtrend for the past two weeks. At the time of writing it is trading at 34.5% below its all-time high of $0.0016, attained on 28 August.
Understanding DOGS
DOGS is a dog-themed meme coin based on the TON blockchain. It was launched on 26 August after the arrest of the Telegram founder, Pavel Durov, in France. The meme coin was developed to build a community around Spotty, a dog character connected to the Telegram founder. It all started when Durov used a dog illustration during his presentation at a charity auction for orphanages. Later that illustration of the dog was sold and the proceeds were donated to charities.
More significantly, that illustration became very popular on social media platforms in Russia. As a result, it became an unofficial logo for VKontakte. This is a social media platform, of which Durov is also a co-founder.
Also, DOGS was created to leverage on the large Telegram community. Sadly, although the community interest in the token is very strong its performance has been below expectation. As a fact, Telegram was launched in 2013 while based on iOS. However, over the years it has expanded to Android. Now, it also has a desktop version.
DOGS Tokenomics and Distribution
At its launch on 26 August DOGS had a market capitalization of $865 million. However, its value has since decreased to around $556 million and is now ranked number 8 among meme coins. A few days after its launch the DOGS airdrop was activated. Every Telegram account holder had the right to claim the airdrop. The amount of the DOGS tokens allocated to an account user depended on the time period it had been in use. After its airdrop users can earn more tokens by completing various tasks.
DOGS has a total supply of 550B tokens. 10% of the tokens were allocated to the team for future development while 8.5% was set aside to provide liquidity on centralized and decentralized exchanges.
DOGS Price Prediction
Dogs’ next key resistance is at $0.0017 and its short term target is $0.002. However due to the high demand, its deflationary model and strong tokenomics its price may surge towards $0.005 by the end of the year. Its price performance also hinges on the general market sentiment. Changes in the macroeconomic environment such as interest rates cut in the United States may influence its price fluctuations. Also, if there is a high adoption in coming months its value may also rise.
Is DOGS a Good Investment?
At the present time DOGS is a promising cryptocurrency since it is integrated with Telegram which has more than 50 million users. This means that it may have a high adoption rate which may increase its demand. The Telegram community is highly supportive of the token and the members are mostly informed about its existence. The community’s engagement effort and method of distribution has made it popular and relevant in the crypto space.
However, like most meme coins it does not have a real-world use case as yet. Maybe with time the team may forge partnerships and collaborations which will enable it to have utility outside the Telegram ecosystem. Also, like most cryptocurrencies, DOGS can become highly volatile. Therefore, investors should carry out thorough technical analysis before investing in the token.
Since the token exists on the TON blockchain and has the backing of the Telegram community there is a high chance that its value may rise in the future. At the moment, therefore, the best strategy for investors could be hodling. One can buy DOGS at its current price of $0.0016 and hold it for several months or years. Its value may increase resulting in respectable gains.
In all, the fact that DOGS is backed by a large community and has the funny element of meme coins makes it stand out within the category. However, at the moment it is a purely speculative token which requires caution when investing in it.
Disclaimer: This is a paid post and should not be treated as news/advice. LiveBitcoinNews is not responsible for any loss or damage resulting from the content, products, or services referenced in this press release.
