Can Dogecoin Reach Its Previous ATH? Let’s Take A Look At The Facts

Dogecoin (DOGE) got here into the highlight through the 2021 bull market after mounting a formidable rally fueled by billionaire Elon Musk posting concerning the coin on his Twitter account. Nonetheless, the meme coin has since misplaced most of these good points because the bear market has raged on. With Dogecoin sitting about 90% beneath its Might 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 house however a worrying truth concerning the cryptocurrency is that it has a limiteless provide. Not like Bitcoin whose provide is capped at 21 million or Ethereum which has enabled a burn mechanism to maintain provide down, there may be nothing holding the provision of the meme coin down.

To place this in perspective, the provision of DOGE is at the moment growing at a charge of round 5 billion cash annually. This interprets to a 4% annual inflation charge, which is sort of excessive particularly when there is no such thing as a method to scale back the provision.

Nonetheless, the meme coin is one that’s purely pushed by hype so it tends to rely much less on its tokenomics for its worth actions and extra on how the neighborhood is feeling about it. An instance of that is Shiba Inu whose whole provide is within the trillions and but noticed super 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 lately seen help from Burger King, one of many largest fast-food chains on the planet, pushing its worth increased.

DOGE Worth Efficiency So Far

Dogecoin’s worth to this point 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 observe the value developments of Bitcoin. Because of this when bitcoin inevitably rallies once more, then DOGE is more likely to observe go well with.

By itself, the meme coin has seen a rollercoaster of a month in March. Mid-March got here with some good points for the digital asset, however the downtrend during the last two weeks has worn out most of these good points, leaving Dogecoin within the crimson as soon as extra.

On the time of writing, DOGE is sitting at a worth 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 during the last week.