Dogecoin's Price Tag May Be Holding It Back: Traders Weigh In

Despite its market capitalization as the largest meme coin, Dogecoin's recent underperformance has left traders questioning whether it will stage another major rally. In a post on X, pseudonymous trader Altcoin Sherpa pointed out that DOGE's size and deep liquidity make it easier for traders to enter and exit large positions but also tend to translate into lower volatility compared with smaller meme coins.

According to Sherpa, Dogecoin hasn't attracted much interest because it is perceived as 'too expensive.' He believes traders looking to maximize upside during ecosystem-specific rallies have smaller-cap alternatives available. However, Sherpa still expects DOGE to 'eventually have another run,' although he cautioned that it could take time.

Trader Chad offered a more bullish interpretation of Dogecoin's prolonged underperformance, arguing that DOGE 'hasn't had a bull market at all' during the current crypto cycle and remains stuck in an accumulation phase. He sees the difference this time as simply the duration, with Dogecoin's accumulation taking 'much, much longer' than in previous cycles.

Analysts have highlighted DOGE's growing network activity, pointing to a 16% spike in weekly active Dogecoin addresses. Another analyst identified an accumulation zone between $0.07 and $0.09 as the market overlooks DOGE's long-term setup. He marks upside targets between $0.50 to $2.