The 40% rally we saw back on Aug. 9 on BabyDoge unfortunately faded away, and the memetoken is now retracing to new lows. But the possibility of another rally is still there as the token reached an important milestone.
1.6 million holders exceeded
The most recent achievement of the memetoken was the enormous number of holders that the network exceeded. More than 1.6 million holders shows the popularity of the token among retail investors and might become fuel for an upcoming rally.
With the recovery of the cryptocurrency market, we are seeing an increase in inflows to the industry, which means that in the upcoming rally, assets with large number of holders - including Dogecoin, Shiba Inu and BabyDoge - might see a spike in buying power as investors look for various tools for risk exposure.
Is there a chance for a rally continuation?
Since Aug. 10, BabyDoge lost around 18% of its value, which usually means the end of a local rally and a drop back to local lows. The correction is usually followed by a rapid drop in volume and market outflows, which is not the case for BabyDoge.
According to volume profiles, we are seeing an ascending tendency in terms of volume as more traders and investors are getting into the memetoken. With the rise in trading volume, there is a real possibility of an upcoming breakthrough and the continuation of the rally on the market.
As for now, BabyDoge is trading with a 1.7% price correction in the last few hours, moving between two important support and resistance lines: the 50-day and 200-day moving average.