A closer look at the prospects for Dogecoin after the halving shows that the future of Dogecoin (DOGE) is bright.
DOGE has been dependent on BTC halvings since 2015, when DOGE halvings ceased.
Dogecoin (DOGE) could be in the process of setting up a massive upside move, according to a cryptocurrency analyst examining historical price data following the halving.
Dogecoin History and Halving Mechanism
Dogecoin was forked from the Bitcoin (BTC) code in 2013 by Billy Markus, also known as Satoshi Nakamoto, and Jackson Palmer. Initially, Dogecoin adopted a halving mechanism similar to Bitcoin, which meant that Dogecoin’s mining rewards were halved every 100,000 blocks, or roughly every 69 days. This halving mechanism had a significant impact in early versions of Dogecoin, driving its price volatility.
However, over time, Dogecoin evolved into a means of value storage that is more like a consumer currency than a deflationary currency. Therefore, after 2015, the halving mechanism of Dogecoin stopped. Nevertheless, the price of Dogecoin tends to fluctuate significantly after the Bitcoin halving event, which reflects the market's interest and investment sentiment as a popular cryptocurrency.
Can Bitcoin Halving Push DOGE Above $1?
MikyBull, a macro-contrarian cryptocurrency analyst, believes that after Bitcoin’s halving cycles in July 2016 and June 2020, Dogecoin’s price action saw delayed spikes each time.
Dogecoin History and Future Predictions
Dogecoin (DOGE) hit an all-time high of $0.7316 on May 8, 2021. Technical chart analyst MikyBull expects a similar appreciation to occur in the price of Dogecoin as Bitcoin’s most recent halving is over. Bitcoin’s block reward will be reduced from 6.25 BTC per block to 3.125 BTC on April 20, 2024. He predicts that the price of Dogecoin will rise to $1.10, though this bullish prediction is not based solely on technical patterns.
Although Dogecoin has failed to find strong support above $0.22 this year, large investors are clearly still confident in the original meme coin. Yesterday, large whales cumulatively bought 60 million DOGE tokens, a move that pushed the price back above $0.12. While this brought optimism to the Dogecoin community, the derivatives market showed a bearish trend as speculators shorted Dogecoin more frequently than leveraged long positions.
Currently, the long-to-short ratio is 0.9227, indicating that Dogecoin longs have been hit hard in the derivatives market. In the last 24 hours, Dogecoin long accounts lost $1.86 million out of a total of $2.08 million in liquidations.
According to the current consensus, the block reward of Dogecoin is 10,000 DOGE per block. Since the block generation time is 1 minute, up to 14.4 million DOGE will enter circulation every day. Since Dogecoin has long been ranked in the top ten in the world in terms of market value, its market liquidity is much higher than other meme coins.
