The dispute between Safemoon and Dogecoin is fascinating. Especially in the perspective of the broader altcoin market. In April, the prices of Safemoon [SFM] and Dogecoin [DOGE] followed the lead of Bitcoin [BTC]. DOGE, on the other hand, began early when Elon Musk switched it for Twitter’s logo for a few days in early April. DOGE traded on Twitter from $0.07600 to $0.10500 on April 3.
SFM didn’t lag far behind in interest, but its history and fraud claims continue to overwhelm its current price action. It set new swing lows at publication but won’t stop a probable comeback. Given that both are memecoins that may quickly become popular and provide long-term gains – Which performed better in April, and how well will they weather future market volatility?
When the market is uncertain, various assets respond differently. DOGE and SAFEMOON’s reactions varied, particularly amid BTC price volatility in April 2023. Notably, BTC consolidated near $28k in late March before breaking above the range on April 11. BTC reached $31,000 during the surge. During the same time period, DOGE’s rally following Twitter’s action cooled to around $0.08107, up from $0.10500. However, BTC’s surge caused it to rise to $0.09500, a 17% increase.
The optimistic attitude also provided SAFEMOON bulls with a safe landing. They increased by 64% from $0.0001700 to $0.0002804. As a result of BTC’s upsurge in mid-April, SAFEMOON was a safer investment, with 64% gains compared to 17% for DOGE during the same time. After BTC’s sharp retracement, the picture changed dramatically. On April 24, the king coin fell from $31k to $26k before trying to rebound.
Interestingly, SAFEMOON lost 21% of its value on April 24, falling from $0.0002804 to a crucial bullish order block of $0.0001938. DOGE, on the other hand, lost almost 19% of its value over the same time, falling from $0.09500 to $0.07715. As a result, SAFEMOON suffered larger losses during the BTC decline than DOGE. In other words, SAFEMOON outperformed DOGE during the ascent of BTC but suffered more significant losses during the downswing.
DOGE had around $261 million in trading volume compared to SFM’s (Safemoon V2) $1.2 million at the time of writing, equivalent to $10.9 billion and 93.5 million market caps, respectively. Aside from varying market volatility performance, technical indicators were also slightly different during the same period. How will these differences affect the meme currencies’ long-term prospects? Let’s look at the daily charts to get some answers.
Safemoon’s price behavior on the daily chart was below its short and long-term trends – A rather negative viewpoint.
Furthermore, the OBV (On Balance Volume) has dropped significantly since April 17, and the RSI (Relative Strength Index) has entered the oversold zone, indicating increased selling pressure.
The price action imposed a bearish breakthrough at press time, setting a new swing low. As a result, if the latest swing low of $0.0001700 does not hold, sellers may aim for $0.0001416.
Bulls will gain a minimal advantage if the $ 0.001938 level is returned to support. However, the structure will become bullish only if SFM closes above the bearish order block at $0.0002449 (upper channel border).
Notably, the RSI has been hovering below 50 since mid-March, with a brief upswing in mid-April before retreating to lower ranges – confirming that buying pressure has eased over the same period.
DOGE exhibited a parallel channel, similar to Safemoon, and price movement was below the short and long-term trends (50-EMA and 100-EMA). DOGE, on the other hand, has been unable to break through the March swing low of $0.06500.
Notably, the lower wicks extend into the bullish order block (cyan), indicating that the bulls are determined to defend the support level. As a result, if BTC reclaims the $29k zone, bulls may try a comeback and surge toward the bearish order block at $0.09424. On the downside, sellers may gain more leverage if the support cracks. In a severe case, a long slide might ease at $0.07322 or the March swing low of $0.06500.
It is worth noting that DOGE was bullish throughout April but only turned negative on April 20, when BTC lost control over $29k. However, given DOGE’s muted reaction to BTC’s decline compared to SAFEMOON, the former may fall lower than the latter, as seen in April.
Price movement suggests that DOGE can withstand market volatility better than BTC, particularly downswings. Safemoon, on the other hand, may provide greater profits during BTC upswings. Unfortunately, this isn’t a guarantee, given the existing allegations of Safemoon scams. On the plus side, if BTC reclaims the $29k, both assets may recoup losses. They will respond favorably to such a development, although their performance will vary.
