Dogecoin’s strong community could prevent it from fading into obscurity amidst the increasing number of memecoins entering the market. However, analysts are doubtful that it will reach a price of one dollar in this cycle, despite traders’ hopes.
If Dogecoin were to reach a one-dollar price tag, it would represent a 36% increase from its all-time high of $0.73 in May 2021 and a 525% increase from its current price of $0.16.
Over the past seven days, Dogecoin has seen a 2.58% rise. This growth is significantly lower compared to other large-cap memecoins within the same timeframe, according to data from CoinMarketCap.
In contrast, the three largest memecoins by market capitalization experienced notable upside price action in the last week. PEPE saw a 43% increase, Shiba Inu rose by 17.42%, and Dogwifhat gained 14.43%.
Rekt Capital, a pseudonymous trader, stated that Dogecoin is one of the most cyclical altcoins in the space. He believes that the rising popularity of other memecoins will not have a major impact on investor sentiment towards Dogecoin, as other meme coins launching does not mean Dogecoin will suffer.
On the other hand, Pav Hundal, the lead analyst for Australian crypto exchange Swyftx, expressed a more skeptical position. While acknowledging Dogecoin’s large community of users, Hundal believes that sharp spikes in price may lead to a significant sell-off from long-term holders. He suggests that the decision-making of millions of minnow investors who bought Dogecoin in 2021 will play a crucial role in determining whether the price will reach one dollar before a potential sell-off.
Hundal also pointed out that Dogecoin is not experiencing the same level of interest as it did in the last cycle. In the derivatives market alone, there has been a 56% drop in Open Interest (OI) since the beginning of April. OI in Dogecoin currently stands at $928.72 million, compared to $2.15 billion on April 1, according to CoinGlass data.
Despite the decline in derivatives activity, Rekt Capital believes that Dogecoin’s chart shows cyclicality, indicating that it will most likely reach a price of one dollar in this cycle. He emphasized Dogecoin’s historical heritage and its predictable cycles, which are frequently discussed by traders on social media.
Another factor that could influence Dogecoin’s price is the potential social media posts from billionaire Elon Musk, who has shown continued interest in Dogecoin. Musk has been interacting with the well-known Dogecoin influencer DogeDesigner on X since April 17. However, Musk recently stated that he doesn’t spend much time thinking about cryptocurrency.
In conclusion, Dogecoin’s strong community and historical heritage may prevent it from fading into obscurity. While traders hope for a one-dollar price, analysts are skeptical. The decision-making of long-term holders and potential social media posts from Elon Musk could influence its price in the future.