Bitcoin Dogecoin (DOGE) is once again attracting significant market interest. While some analysts see future growth prospects, there are several reasons why DOGE will not be as explosive in 2024 as it did in 2021. Let's look at the resistance levels DOGE faces, the factors that sustain its current surge and the structural problems that could hinder its future potential.
Market analyst MadWhale noted that Dogecoin is currently climbing, with resistance at around $0. $23 and $0. $34. For DOGE, these pricing points have historically been very major obstacles.
Despite many efforts, strong selling pressure makes it difficult to maintain these levels in the long term. If DOGE exceeds $0. 23, the next major hurdle would be $0. 34, a level that has never reached since cryptocurrencies soared in 2021. Still, even if DOGE overcomes these challenges, some basic flaws make it unlikely to return to its 2021 highs.
From an October starting price of $0. $10 65 to a peak of $0. $1913, Dogecoin posted a significant increase of nearly 80%. Even with the recent correction to $0. 1866, analysts remain hopeful for the short term.MadWhale Highlights that support at $0. 08, the rising launch pad for DOGE, is crucial for the recent surge.
If Dogecoin maintains this trend, it could approach $0. 34, a further 82% increase. However, given the basic limitations of Dogecoin and the ongoing problems with its architecture and use cases, any positive momentum can be short-lived.
Despite canecoin's strong return, its long-term prospects remain overshadowed by a number of factors. A major drawback of the token is that its value is useless except for speculative trading.
Dogecoin was originally launched as a joke, while other * * cryptocurrencies such as Bitcoin and Ethereum were intended for certain uses. Currently, fewer than 2,500 stores worldwide accept Dogecoin as a payment method, which limits its acceptance and value compared to other major cryptocurrencies. The inflationary nature of canecoin further complicates its appeal as an investment.
Unlike Bitcoin, which is limited to 21 million in supply, the supply of Dogecoin is unlimited, with about 10,000 new tokens coming in circulation every minute. Unless its use case grows, this strategy will continue to dilute and make it difficult for Dogecoin to maintain significant long-term price increases.
Dogecoin development activity has also declined dramatically over the years. The project has only 21 full-time developers, and Electric Capital's * * study rated Dogecoin as the 81st place in developer participation.
This low level of development means that Dogecoin lacks continuous innovation and improvement, thus limiting its growth potential compared to initiatives including strong development communities and roadmap.
The price of Dogecoin is still heavily influenced by the speculative cycle, often triggered by social media campaigns. Since the token is largely dependent on community-driven needs without any significant technological development or practical use, it is very unstable and unpredictable. The extreme hype in 2021 helps explain some of the rapid growth; this may not be replicated in the current market.