Dogecoin Sits At Historic Price Lows, Near-Term Reversal Is Likely

Dogecoin sits at the historic price low but some of the indicators show that there could be near-term reversal coming our way as we are reading today in our dogecoin news update.

DOGE was released in 2013 after it emerged from the effort to increase crypto adoption, understanding, and awareness. It was initially inspired by the Shiba Inu meme and created by Billy Markus with the help of Jackson Palmer who departed the project in 2015. DOGE has a coin supply of 123 billion and it was among the highest-circulating supplies among all of the coins, ranked at 31^st place on the Brave New Coin market cap table.

DOGE has a fixed block reward of 10,000 DOGE and a one minute block time that has no limit on the total number of coins created. The DOGE block height is now above 3,082,333 and inflation of about 4.08%. After the security concerns about the 51 percent attack in 2014, the creator of Litecoin Charlie Lee proposed a merge mining solution for both the coins. Merged mining allows for cryptocurrencies with the same consensus algorithm to be mined at the same time.

In 2019, DOGE reached a record high of $3.27 billion in on-chain daily transaction volume and surpassed all of the coins that day with the exception of Bitcoin. The average transaction fees are now at $0.000289 and have been lower than BTC, BCH, LTC, and DASH. The 30-day Kalichkin network value to estimated on-chain daily transactions ratio is 100 and is still rising. An NVT below 30 would likely indicate organic and sustained bull market conditions. The NVT can be a leading indicator of a reversal in asset value. An uptrend in this indicator often suggests a coin that is overvalued based on economic activity.

After being almost dead in 2014, Dogecoin sits at the lowest low despite being saved by the merged mining initiative with Litecoin. DOGE was created as a joke but it stood the test of time due to the enduring position of a mascot in the crypto community. The dedicated protocol development slowed to a halt while DOGE continues to serve as an important gateway for the curious crypto users.

The technical analysis for DOGE/BTC market suggests a near-term reversal since the spot price has continued to grind the historic low for a few months. DOGE/BTC often performs the best when the BTC/USD pair enters a period of consolidation. Each rise in DOGE’s history was unable to consolidate further which led to a prolonged 200-day downtrend.