Kelvin Daminabo
Degen, the second-largest meme coin on the Base Blockchain, has made headlines with a remarkable increase in its price, emerging as the top-performing cryptocurrency. On October 2nd, its value skyrocketed by over 128%, hitting a peak of $0.012, the highest it has been since June 16th. This rise indicates a stunning 300% gain from its previous low in September.
This price surge is largely thanks to Degen being listed on Coinbase, the leading crypto exchange in the U.S. Typically, cryptocurrencies see substantial price rises after securing a listing on prominent exchanges like Coinbase, Binance, Bybit, and OKX. The excitement among traders and heightened expectations contribute significantly to this phenomenon, leading to increased demand for the token.
However, it is important to recognize that the excitement following exchange listings can be fleeting, particularly in a bearish market. Degen’s price hike correlated with a rise in smart money investors, while trading volume on centralized exchanges dropped. Nansen’s data shows a 9% decrease in volume, dropping to 3.65 billion, while the number of smart money holders increased to 80, the highest since July 21st.
Degen has secured a prominent position in the meme coin space, boasting a market cap of $175 million. It ranks second in the Base network, following Brett, which has over $843 million in market cap. Other meme coins on the Base platform, such as Mister Miggles, mfercoin, Basenji, and Keyboard Cat, have also seen gains of 10% to 17% in the past week.
The impressive performance of these meme coins has played a role in establishing Base as one of the leading layer-2 networks in the industry. Data from DeFi Llama indicates that the volume across its decentralized exchange networks increased by 16% over the past week, surpassing $4.2 billion. This showcases the growing interest and acceptance of Base and its meme coins.
Degen’s recent price surge marks a noteworthy development in the cryptocurrency market, with its Coinbase listing being a significant factor in its success. Nevertheless, it is important to understand that the effects of exchange listings can taper off quickly and may not maintain momentum over time. Still, the rise of Degen and the other Base meme coins reflects a burgeoning interest in these digital assets.
Degen Price Surge Overview
The Degen token has recently shown a notable price increase, establishing a double-bottom pattern at $0.0028, signaling a possible market trend reversal. The price has climbed above the neckline of this pattern at $0.005570, achieving its peak from September and August. This breakout suggests increasing momentum and interest from investors.
Moreover, the Degen token has surpassed the 50-day moving average, a critical indicator for the short-term trend, indicating the token is gaining strength. Technical indicators like the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) are also trending upwards, hinting that the price may continue to rise in the near future.
However, it’s crucial to acknowledge that the price might lose some of its gains as the excitement from the listing dwindles. This correction is common in the crypto market when tokens experience an initial surge post-listing only to stabilize later. Should this occur, the next critical support level to monitor will be $0.0055.
The recent surge in Degen’s price serves as a positive sign of increasing momentum and investor activity. While the potential for a price correction exists with the fading post-listing hype, the double-bottom formation and the break above the 50-day moving average suggest that there’s potential for further upward movement. Investors are encouraged to remain vigilant and ready to capitalize on any emerging opportunities.