Dogecoin (DOGE) came into the spotlight during the 2021 bull market after mounting an impressive rally fueled by billionaire Elon Musk posting about the coin on his Twitter account. However, the meme coin has since lost most of those gains as the bear market has raged on. With Dogecoin sitting about 90% below its May 2021 all-time high, the question is now whether DOGE will ever reach $0.7 again.
Can Dogecoin Reclaim $0.7?
Dogecoin is still holding steady as one of the largest cryptocurrencies in the space but a worrying fact about the cryptocurrency is that it has an unlimited supply. Unlike Bitcoin whose supply is capped at 21 million or Ethereum which has enabled a burn mechanism to keep supply down, there is nothing keeping the supply of the meme coin down.
To put this in perspective, the supply of DOGE is currently increasing at a rate of around 5 billion coins each year. This translates to a 4% annual inflation rate, which is quite high especially when there is no way to reduce the supply.
However, the meme coin is one that is purely driven by hype so it tends to rely less on its tokenomics for its price movements and more on how the community is feeling about it. An example of this is Shiba Inu whose total supply is in the trillions and yet saw tremendous success in the 2021 bull market as well.
DOGE trending at $0.0757 | Source: DOGEUSD on TradingView.com
The possibility of DOGE reclaiming $0.7 remains high given that it still enjoys support from the likes of Elon Musk even during the bear market. It has also recently seen support from Burger King, one of the largest fast-food chains in the world, pushing its price higher.
DOGE Price Performance So Far
Dogecoin’s price so far has correlated with the performance of the general crypto market. Most coins are down significantly from their 2021 all-time high values and DOGE is no exception. But more importantly, the meme coin continues to follow the price trends of Bitcoin. This means that when bitcoin inevitably rallies again, then DOGE is likely to follow suit.
On its own, the meme coin has seen a rollercoaster of a month in March. Mid-March came with some gains for the digital asset, but the downtrend over the last two weeks has wiped out most of those gains, leaving Dogecoin in the red once more.
At the time of writing, DOGE is sitting at a price of $0.0843, down 0.97% and seeing 0.88% losses in the last week. Although DOGE is doing better than others, it is still one of the worst performers of the large caps over the last week.
Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet… Featured image from NewsBTC, chart from TradingView.com
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