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 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 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 truth concerning the cryptocurrency is that it has a vast provide. In contrast to Bitcoin whose provide is capped at 21 million or Ethereum which has enabled a burn mechanism to maintain provide down, there may be nothing retaining the availability of the meme coin down.

To place this in perspective, the availability of DOGE is at present growing at a fee of round 5 billion cash annually. This interprets to a 4% annual inflation fee, which is kind of excessive particularly when there isn’t any solution 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 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 large success within the 2021 bull market as nicely.

DOGE trending at $0.0757 | Supply: DOGEUSD on TradingView.com

The potential of 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 larger.

DOGE Value Efficiency So Far

Dogecoin’s worth to date has correlated with the efficiency of the final 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 observe the value developments of Bitcoin. Which means that when bitcoin inevitably rallies once more, then DOGE is prone 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 features for the digital asset, however the downtrend over the past 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 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 over the past week.