NOIDA (CoinChapter.com)— DOGS, another meme coin from the TON blockchain, had a humpty dumpty sort of day on Sept. 1. The drop is surprising given the project’s marketing team and investors’ efforts to hype the Dogs token price to the moon.
DOGS Price Makes Slight Recovery
The Dogs token price made a marginal recovery on Sept. 2, with the coin spiking nearly 9% to a daily high near $0.00114 before paring most of its gains.
The loss of DOGS coin gains highlights the bearish pressure against the token. Moreover, the token’s price dropped nearly 19% on Sept. 1. It seems likely that bulls are defending the $0.001 price level.
However, if the DOGS token price fails to hold current price levels, the memecoin might drop to the support level near $0.000624. Further analysis of the DOGS token suggests that the failure of the immediate support level might result in a test of the $0.00031 support level.
On the other hand, the DOGS USDT pair might rise to the resistance level near $0.0019. Flipping the immediate resistance might help the DOGS coin price rise to the resistance near $0.0042, though it seems unlikely given the bearish pressure against the token.
The RSI remained neutral for DOGS, scoring 33.92 on the daily charts.
Hype A Prelude to a Potential Pump?
The recent surge of tweets promoting DOGS token raises concerns about a potential pump-and-dump scenario orchestrated by various stakeholders.
Across social media, the token is gaining momentum, with users and even projects contributing to the bullish narrative. While the behavior is not uncommon in the crypto market, it often serves as the preliminary phase of a pump—a coordinated effort to inflate the price of an asset before an inevitable sell-off.
Multiple tweets highlighting a bullish outlook for the DOGS token price landed on social media, with some users forecasting a price reversal after reaching local demand zones. At the same time, others wait for confirmation of a bullish candle to enter long positions.
These optimistic predictions, however, seem to lack substantial technical backing and instead appear to be fueled by the excitement generated around the token. This raises the possibility that these social media activities are part of a broader strategy to artificially boost the token’s price.
Interestingly, despite claims that only centralized exchanges (CEXs) are promoting DOGS, it’s evident that individual users and possibly other entities are also amplifying the hype. Whether these individuals have a connection to the exchanges or part of the project’s marketing efforts remains unclear.
Still, their involvement suggests driving a more widespread campaign to boost interest in the token. Such efforts often mark pump-and-dump schemes, where early promoters benefit at the expense of later investors who end up holding the bag once the price plummets.
Given these observations, the current bullish sentiment surrounding DOGS could be misleading. Investors should remain cautious of a possible dump in the future, sooner rather than later.
