Dogecoin (DOGE) got here into the highlight throughout the 2021 bull market after mounting a powerful rally fueled by billionaire Elon Musk posting concerning the coin on his Twitter account. Nevertheless, the meme coin has since misplaced most of these features 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 remains to be holding regular as one of many largest cryptocurrencies within the house however a worrying truth concerning the cryptocurrency is that it has an infinite 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 protecting the availability of the meme coin down.
To place this in perspective, the availability of DOGE is presently rising 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 isn’t any method to scale back the availability.
Nevertheless, 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 whole provide is within the trillions and but noticed great success within the 2021 bull market as nicely.
DOGE trending at $0.0757 | Supply: DOGEUSD on TradingView.com
The opportunity of DOGE reclaiming $0.7 stays excessive provided that it nonetheless enjoys assist from the likes of Elon Musk even throughout the bear market. It has additionally not too long ago seen assist from Burger King, one of many largest fast-food chains on this planet, pushing its value greater.
DOGE Value Efficiency So Far
Dogecoin’s value to date has correlated with the efficiency of the overall crypto market. Most cash are down considerably from their 2021 all-time excessive values and DOGE is not any exception. However extra importantly, the meme coin continues to comply with the value tendencies of Bitcoin. Because of this when bitcoin inevitably rallies once more, then DOGE is more likely to comply with swimsuit.
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 during the last two weeks has worn out most of these features, leaving Dogecoin within the purple 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 big caps during the last week.
