Can Dogecoin reach its previous ATH? Let’s take a look at the facts
Dogecoin (DOGE) came into the spotlight during the 2021 bull market after completing an impressive rally driven by billionaire Elon Musk who posted about the coin on his Twitter account. However, the meme coin has since lost most of those gains as the bear market has raged. With Dogecoin sitting around 90% below its May 2021 all-time high, the question now is whether DOGE will ever reach $0.7 again.
Can Dogecoin Regain $0.7?
Dogecoin is still holding steady as one of the biggest cryptocurrencies in the space, but a worrying fact about the cryptocurrency is that it has an unlimited supply. Unlike Bitcoin whose supply is limited to 21 million or Ethereum which has activated a burn mechanism to keep the supply down, there is nothing keeping the supply of the meme coin down.
To put this into perspective, the supply of DOGE is currently increasing at a rate of around 5 billion coins each year. This corresponds to an annual inflation rate of 4%, which is quite high, especially when it is not possible to reduce the supply.
However, the meme coin is one that is driven solely by hype, so it tends to rely less on tokenomics for price movements and more on how the community feels about it. An example of this is the 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 regaining $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 biggest 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 overall crypto market. Most coins are down considerably 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, DOGE will likely follow suit.
On its own, the meme coin has seen a rollercoaster of a month in March. Mid-March brought some gains for the digital asset, but the downtrend over the past two weeks has wiped out most of those gains, leaving Dogecoin in the red.
At the time of writing, DOGE is sitting at a price of $0.0843, down 0.97% and has had a 0.88% loss in the last week. Although DOGE is doing better than others, it is still one of the worst performers of the major companies in the last week.
