Dogecoin’s Lackluster Performance in 2023
The Dogecoin price action in 2023 has been less than exciting compared to other top cryptocurrencies like Bitcoin, Ethereum, and Solana. However, it has managed to recover by around 77% from its bear market lows in June 2022.
On-Chain Metrics Point to a Potential Rebound
Despite its underperformance, DOGE’s on-chain metrics have recently shown significant growth, indicating a potential rebound on the horizon. This could lead to a surge in Dogecoin’s price and potentially reach new all-time highs.
Dogecoin Market Overview
From being the original meme coin in the crypto industry, Dogecoin has grown to become the 10th-largest cryptocurrency by market cap. It currently holds a market cap of $13 billion, almost double the value of Wyndham Hotels & Resorts and on par with Nissan.
However, Dogecoin has had a tough year in 2023, falling short compared to major cryptocurrencies. Its current trading price is $0.09109, down 87% from its all-time high of $0.7315.
DOGE is now in its 940th day of a bear market, which is 217 days shorter than the historical average. This extended bear run has only occurred twice before in Dogecoin’s history.
In previous cycles, Dogecoin experienced prolonged periods of price decline lasting for 1,192 days and 1,117 days before eventually recovering.
Although Dogecoin has been trading above its 2022 low for 543 days now, it still lags behind the previous cycles. In the first cycle, it took DOGE 977 days to reach its all-time high from the 2015 low, while it only took 423 days to achieve the same feat from its 2020 lows.
Growing Doginals and Increased User Activity
In May, Dogecoin introduced Doginals, which are equivalent to BRC-20 tokens. Since their launch, Doginals have experienced significant growth with a cumulative market cap of $100 million. Additionally, there has been a surge in new and active users on the Dogecoin network, something that was lacking for most of the year. Over the past 30 days, more than 282,000 non-zero balance addresses have been added, while holders remain steadfast.
Potential Price Turnaround for DOGE
Although Dogecoin has retraced from above the $0.1 mark and is currently trading at $0.09109, if the on-chain metrics continue their upward trend into 2024, there is a possibility of a price turnaround. DOGE could break above the $0.1 level and potentially reach $0.2 for the first time since 2021. Data shows that there are approximately 235,150 addresses waiting to profit at around the $0.1 price level.
Hot Take: Dogecoin’s Road to Recovery
While Dogecoin may not have performed as well as other top cryptocurrencies in 2023, its recent on-chain metrics suggest that a rebound is on the horizon. With growing adoption of Doginals and an influx of new users, there is potential for DOGE to see a price turnaround in 2024. If this trend continues, we could witness Dogecoin breaking above the $0.1 level and even reaching $0.2 for the first time in years.
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