Dogecoin will be issued in 5 billion new coins every year. What do you think about this?
Imagine that Dogecoin is everywhere now, and the total amount has soared to about 146 billion! And every year, 5 billion new partners will join this big family. By 2024, the issuance rate will be about 3.4%!
In comparison, our country’s average inflation rate in 2024 is expected to be only 2.4%. By this comparison, the issuance rate of Dogecoin seems to be a bit too high, and many people are worried that it will depreciate as a result!
However, look at it from another angle! If we look at Dogecoin as a currency, hey, its growth rate is much lower than the growth rate of currency in circulation! You know, in 2023, our broad money increased by 9.7% year-on-year, narrow money also increased by 1.3%, and currency in circulation increased by 8.3%!
The rate of increase in the issuance of Dogecoin is actually quite in line with the pace of economic development
Looking at the economic growth rate, it is expected to grow by about 5% in 2024. From this point of view, the issuance rate of Dogecoin is actually quite in line with the pace of economic development. Moreover, as the Dogecoin family grows, the issuance rate will gradually decrease. It may become 2.5% in 10 years, and what about in 20 years? Even lower!
Cryptocurrency Analysis: DOGE Has Potential to Rise 53%
CobraVanguard, a well-respected analyst on TradingView, noted that DOGE is forming an ascending triangle on the daily chart. From the local high on March 28, 2024 (around $0.22737), this pattern has been within a descending wedge.
“As you can see, DOGE is now in an ascending triangle pattern and is also inside a descending wedge. This means that if DOGE can break through the upper limits of these two patterns, the price has the potential to reach the target range (AB=CD),” he wrote a few days ago.
According to the chart he provided, the support level that DOGE needs to break in this pattern is roughly between $0.11045 and $0.11400.
The analysis points out that DOGE has the potential to rebound, aiming to test the resistance levels of $0.13353 and $0.16661. From DOGE's current price of $0.10883 as of Wednesday evening, the potential gains are 22.7% and 53%, respectively.
However, KlejdiCuni has a completely different view. He mentioned on August 15, 2024 that the price of DOGE may fall sharply, with a target of $0.08451.
However, as of August 23, 2024, DOGE has actually managed to break above the $0.10896 resistance level and is currently in a consolidation phase with the price moving relatively sideways on the 4-hour chart.
Looking further at the daily timeframe, the asset with a doggie sign is attempting to retest the EMA-200 ($0.11767) after successfully breaking above the EMA-50 ($0.10617).
Currently, the closest resistance for DOGE is at EMA-50 ($0.11289), which is expected to be reached soon as an upward crossover between EMA-20 and EMA-50 is likely to occur in the coming days.
TRON Correction is Coming
Meanwhile, Alan Santana, an analyst at TradingView, noted that TRON is experiencing a correction. He mentioned, “Tron’s decline proves that other cryptocurrencies are also declining, because the market will not always go up in a straight line. The adjustment is not over yet, but it is close to the end.”
He explained a pattern called "irregular correction". In this pattern, the peak of the second wave (B) is higher than the end of the previous bullish wave. He used the example of Bitcoin's performance from November 2021 to April 2022 to illustrate that although April was considered the end of the bull market, a higher peak appeared in November 2021, which is a typical manifestation of irregular correction.
“This phenomenon is influenced by the monetary expansion policies associated with the COVID-19 pandemic, where a sharp increase in fiat currencies has led to a decrease in their value, thus forming these patterns,” he said.
According to the chart he provided, the $0.168 level (August 19, 2024) is the peak of the second wave (B) in the correction scenario. In the following weeks, the candle chart follows the trend described by Santana and falls to level C, which is $0.083, but the current candle is slightly away from this hypothetical line.
In the short term, the daily chart shows that the price is in a state of consolidation. From September 20, 2024, the candlestick chart fluctuates in a relatively narrow range (around $0.1508).
During this period, prices are stable with no discernible trend, either up or down. Consolidation is often viewed as a rest period in the market while participants await more information or a catalyst to determine the next price direction.
Typically, after a consolidation session ends, the price experiences a breakout, either to the upside (bullish breakout) or to the downside (bearish breakout), which signals the start of a new trend.
So, Dogecoin is actually quite adaptable to economic development, while still maintaining a little deflationary characteristics. Many people think that this may be its secret weapon to become a future FA currency alternative!
DOGE is mentioned in this cryptocurrency analysis, and technically, it has the potential to rise by 53%. At the same time, TRON is also facing some key resistance levels and may see a pullback in the short term.
More practical strategies, specially prepared for spot enthusiasts and bull market hoarders! Click on my avatar to follow and get my bull market strategy deployment, which is shared for free to all fans. You need references, I need fans, and I want to be the most generous bull market blogger on the entire network!
