Dogecoin (CRYPTO: DOGE) may benefit from the GameStop-induced rally, according to a trader that made a name for himself thanks to daring eight-figure trades on meme coins.
What Happened: Unipics, also known as "Bonk Guy," expressed bullish sentiment on Dogecoin, citing GameStop's (NYSE:GME) stock surge as an indicator of increased risk appetite for meme coins.
Bonk Guy notes that Dogecoin is the most popular meme coin among retail investors and pumped 800% in a single day in the 2021 GameStop frenzy. The trader predicts that Dogecoin is likely the first cryptocurrency that GameStop enthusiasts would buy.
i longed $doge here
— Unipcs (aka 'Bonk Guy') (@theunipcs) May 13, 2024
thesis:
– $GME stock up 100% today = risk on for memecoins
– $doge is the most popular memecoin among retail. it pumped 800% in one day during the last GME mania
– doge is the first crypto the GME folks are likely to buy pic.twitter.com/1DVBzPjAmh
Crypto Daily Trade Signals, a Dogecoin-focused influencer acocunt, noted in its latest tweet that the Doge Weekly Cross is coming and the meme coin is all set to "explode."
Another trader sees a buy signal on Dogecoin's daily chart for the first time since March 21.
My indicator just flashed a daily signal on #Dogecoin for the first time since March 21st. The last buy signal we went form .12 to .22 cents. Let's see what happens. #DOGE #Altcoins #Crypto pic.twitter.com/FWgxginqrz
— Kevin (@Kev_Capital_TA) May 14, 2024
Price Action: In the past 24 hours, DOGE is trading 5.7% higher at $0.1524.
Also Read: What Does Technical Analysis Say About Dogecoin And Shiba Inu?
Why It Matters: Dogecoin's key metrics show signs of growth.
IntoTheBlock data shows an increase of 46.5% in large transaction volume to $1.62 billion, while daily active addresses increased by 5.5% to 56,740. Total exchange inflows as of May 13 stand at $38.8 million, compared to $10.93 million as of May 12.
Transactions greater than $100,000 more than doubled to 472 transactions, from 204 transactions.
If the correlation between GameStop's stock performance and the popularity of meme coins like Dogecoin continues, retail investors, driven by online communities, may turn to meme coins, leading to price increases. A continued rally in the GameStop meme coin could spur the meme coins movement higher.
What's Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on Nov. 19.
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