Dogecoin (DOGE) got here into the highlight through the 2021 bull market after mounting a powerful rally fueled by billionaire Elon Musk posting in regards to the coin on his Twitter account. Nonetheless, the meme coin has since misplaced most of these features because the bear market has raged on. With Dogecoin sitting about 90% beneath its Could 2021 all-time excessive, the query is now whether or not DOGE will ever attain $0.7 once more.
Can Dogecoin Reclaim $0.7?
Dogecoin continues to be holding regular as one of many largest cryptocurrencies within the area however a worrying reality in regards to the cryptocurrency is that it has a vast provide. Not like Bitcoin whose provide is capped at 21 million or Ethereum which has enabled a burn mechanism to maintain provide down, there’s nothing maintaining the availability of the meme coin down.
To place this in perspective, the availability of DOGE is at the moment rising at a price of round 5 billion cash every year. This interprets to a 4% annual inflation price, which is sort of excessive particularly when there is no such thing as a solution to scale back the availability.
Nonetheless, the meme coin is one that’s purely pushed by hype so it tends to rely much less on its tokenomics for its value actions and extra on how the neighborhood is feeling about it. An instance of that is Shiba Inu whose complete provide is within the trillions and but noticed large success within the 2021 bull market as properly.
DOGE trending at $0.0757 | Supply: DOGEUSD on TradingView.com
The potential for DOGE reclaiming $0.7 stays excessive provided that it nonetheless enjoys help from the likes of Elon Musk even through the bear market. It has additionally just lately seen help from Burger King, one of many largest fast-food chains on the planet, pushing its value increased.
DOGE Worth Efficiency So Far
Dogecoin’s value up to now has correlated with the efficiency of the overall crypto market. Most cash are down considerably from their 2021 all-time excessive values and DOGE isn’t any exception. However extra importantly, the meme coin continues to comply with the value developments of Bitcoin. Because of this when bitcoin inevitably rallies once more, then DOGE is prone to comply with go well with.
By itself, the meme coin has seen a rollercoaster of a month in March. Mid-March got here with some features for the digital asset, however the downtrend over the past two weeks has worn out most of these features, leaving Dogecoin within the crimson as soon as extra.
On the time of writing, DOGE is sitting at a value of $0.0843, down 0.97% and seeing 0.88% losses within the final week. Though DOGE is doing higher than others, it’s nonetheless one of many worst performers of the massive caps over the past week.
