Dogecoin Price Analysis: Will DOGE Join SHIB for Another Memecoin Rally?

Insights:

• Dogecoin (DOGE) price slipped 11% on Monday, Dec 18, as the bears occupied the driving seat. 
• in the weekly timeframe, the latest downswing has seen DOGE price enter a 3% negative performance, while Shiba Inu (SHIB) is up 10%. 
• After enduring a week of sell-pressure, the bulls are regrouping at the $0.09 area, mounting 550 million DOGE orders across exchanges. 

Dogecoin (DOGE) price wobbled below $0.09 on Monday, Dec 18, as the bears forced a rapid 11% correction in less than 24 hours. However, on-chain data trends show that the bulls are now regrouping around the $0.08 area with buy orders now exceeding sell orders on prominent exchanges.  

Will the excess demand of 28 million DOGE be sufficient to prevent further downside?

Retail Traders Have Placed Orders for 550 million DOGE This Week 

Dogecoin price lost ground to Shiba Inu (SHIB) and BONK tokens, after 3 consecutive weeks of dominating the mega-cap memecoin top gainers charts. Between Dec 11, and Dec 18, Dogecoin price sank by 3% while SHIB and BONK registered double-digit gains, hitting historic peaks in the process. 

But after enduring an alarming 11% pull back on Monday,  on-chain data trends shows that the Dogecoin bulls are bracing for a rebound, to join SHIB and BONK on the green side of the price charts. 

IntoTheBlock’s Aggregate Exchange Order Books chart, is on-chain metric that vividly illustrates this optimistic DOGE price outlook.

At press time on Dec 18, the latest readings from the current trading logs of 10 prominent crypto exchanges including Binance, Coinbase shows that the DOGE retail traders have listed active orders to purchase 550 million DOGE in the spot markets. 

Meanwhile, as depicted below, bearish the sellers have only put 522 million DOGE up for sale around the current prices.  

This implies that there is currently an excess demand for 28  million DOGE across major crypto exchanges and spot trading platforms. 

The Exchange Order Books chart depicts the price distribution of the total buy/sell orders for a specific cryptocurrency across various exchanges.  

Currently, Dogecoin market demand (buy orders) has outpaced supply (sell orders) by nearly. 

Typically, when the market demand for an asset exceeds supply, the relative scarcity puts upward pressure on the price. 

Hence, the current sellers may be inclined to raise DOGE prices in the days ahead as buyers compete to get their orders filled.

Considering the positive sentiment surrounding similar mega-cap meme tokens including SHIB and BONK, the bullish momentum could spread toward Dogecoin as well. 

If the bulls activate their orders, it could trigger a Dogecoin price rebound in the coming days.