Dogecoin price today: $0.3960
- Dogecoin's co-founder Billy Markus suggested a code change to make the token deflationary.
- Elon Musk, along with other crypto enthusiasts, replied that Dogecoin's flat inflation could be a feature and not a bug.
- Dogecoin could rise by another 100% if it follows Bitcoin's historical move, according to trader Peter Brandt.
Dogecoin (DOGE) is down 4% on Thursday after key figures, including Elon Musk, shared views on its token design and what a deflationary path could mean for its appeal as a currency. Meanwhile, traders Ali Martinez and Peter Brandt highlighted key similarities between Dogecoin's current price movement and historical data.
Elon Musk suggests Dogecoin’s flat inflation is not a bug
Dogecoin has been the best performer among top cryptocurrencies, soaring over 100% following several bullish triggers in the past week.
President-elect Donald Trump's recent declaration of the Department of Government Efficiency (DOGE) on Tuesday and appointment of Elon Musk as a co-lead for the project stirred further gains for the meme coin earlier in the week.
However, despite Dogecoin's rally, investors are expressing concerns about its unlimited supply, which could cause inflationary pressure over time. Unlike cryptocurrencies like Bitcoin, which has a supply cap of 21 million BTC, Dogecoin's supply will remain in a constant uptrend.
Dogecoin co-founder Billy Markus suggested a code change to the meme coin's protocol would solve its inflationary design. He highlighted some lines of code that anyone can use to change the inflationary structure and create a new version. Dogecoin's community and miners must come to a consensus to use the new version before such changes can be effected across the network.
However, Tesla and SpaceX CEO Elon Musk suggested that Dogecoin's flat inflation mechanism — only a fixed number of its tokens can be issued per time — is a feature. The token's flat inflation implies a decreasing percentage of inflation over time.
Markus concurred with Musk's suggestion, stating, "It is ideal for something intended as a currency [to have] steady, predictable inflation with a percentage that goes down much lower than the [US] Dollar."
Dogecoin Price Prediction: Can DOGE pull historical move?
DOGE trades near the $0.4000 psychological level after a mild correction in the Asian trading session. The correction sparked nearly $45 million in DOGE futures liquidations in the past 24 hours, per Coinglass data. Liquidated long and short positions accounted for $27.81 million and $17.02 million, respectively.
DOGE/USDT daily chart
DOGE is eyeing the $0.4483 resistance, a level last seen in May 2021. A firm close above this resistance will see DOGE rally toward the resistance near the $0.6000 psychological level.
The Relative Strength Index (RSI) is far inside its oversold region, indicating a potential pullback could be imminent.
In an X post on Wednesday, crypto analyst Ali Martinez hinted that DOGE may continue its bullish run but could see double-digit corrections along the way based on historical patterns.
In 2017, #Dogecoin surged 9,470%, with two major corrections along the way—one at 40% and another at 84%. In 2021, $DOGE rocketed 30,700%, again seeing two key pullbacks of 46% and 53%.
— Ali (@ali_charts) November 13, 2024
Now, as #DOGE seems to be entering another parabolic run, remember that corrections are part… pic.twitter.com/7bz7eosMMU
Trader Peter Brandt also provided a similar analysis to Ali, comparing DOGE's current price chart to Bitcoin's 2016 price movement. According to him, DOGE is "at a life cycle where BTC was in May 2016."
Does anybody see the similarities of $DOGE to the $BTC chart in 2015-2016?
— Peter Brandt (@PeterLBrandt) November 13, 2024
-Blow off top
-Correction via a falling wedge
-Double bottom
-Complex correction following completion of double bottom
DOGE is at life cycle where BTC was in May 2016
It was the chart in Spring 2016 that… https://t.co/bpJbFyrAyS pic.twitter.com/QiOhpEnaal
If DOGE follows the Bitcoin 2016 chart, it could rally over 100% in the next few months.
A daily candlestick close below $0.3517 will invalidate the bullish thesis.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Three Arrows Capital demands $1.5B increase in the FTX lawsuit
Liquidators managing Three Arrows Capital's (3AC) bankruptcy have filed a motion to raise their claim against FTX from $120 million to $1.53 billion. Bloomberg reports that FTX allegedly liquidated and seized around $1.33 billion in assets from the hedge fund to settle debts just two weeks before 3AC’s collapse.
Missing crypto influencer Kevin Mirshahi found dead in Montreal Park
Authorities report that the remains of Kevin Mirshahi, a prominent crypto influencer who was abducted in June, have been found in a Montreal park. Local police informed “The Gazette” that a passerby found the grim discovery on October 30 in Île-de-la-Visitation Park.
XRP struggles near $0.7440, could still sustain rally after Robinhood listing
Ripple's XRP open interest has declined by over 10% in the past 24 hours. Robinhood's listing of XRP could serve as a catalyst for renewed demand. XRP continues to struggle near historically strong resistance after sustaining another rejection at $0.7440.
Dogecoin price forecast: Miners offload $240M as DOGE approaches risk zone
After reaching a three-year peak of $0.43 on November 12, Dogecoin price wobbled 13% to find support at the $0.38 level on Wednesday. Miners capitalized on Trump’s recent D.O.G.E confirmation statement to offload 620 million DOGE in the last three days.
Bitcoin: Further upside likely after hitting new all-time high
Bitcoin hit a fresh high of $76,849 on Thursday as crypto-friendly candidate Donald Trump won the US presidential election. Institutional demand returned with the highest single-day inflow on Thursday since the ETFs’ launch in January.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.