Dogecoin (DOGE) Price Prediction 2024: Will DOGE Make a Comeback or Crash?

Once more, the well-known meme bitcoin Dogecoin (DOGE) has attracted a lot of interest in the market. Although some analysts see a bright future rise

Once again, the popular meme coin Dogecoin (DOGE) has managed to spark a wave of interest in the market. While some analysts foresee a promising uptrend, there are several reasons to believe that 2024 might not bring the explosive gains that DOGE saw in 2021. Let’s explore the upcoming resistance levels that DOGE is facing, the factors driving its current surge, and the fundamental challenges that could limit its future growth potential.

Major Resistance Levels for Dogecoin

Dogecoin is currently facing upcoming resistance levels at around $0.23 and $0.34, as noted by market analyst MadWhale. These price points have historically acted as strong barriers for DOGE. Despite multiple attempts, Dogecoin has struggled to hold above these levels for extended periods due to strong selling pressure. If DOGE manages to break past $0.23, the next major resistance would be at $0.34, a level last seen during the crypto bull run of 2021. However, even if DOGE manages to overcome these challenges, some fundamental flaws make a return to its 2021 highs unlikely.

Dogecoin has seen impressive gains so far this year, rising from an opening price of $0.1065 in October to a peak of $0.1913, marking an increase of almost 80%. Even after a recent correction to $0.1866, analysts remain optimistic about the immediate term. MadWhale highlights the $0.08 support level as a crucial factor, acting as a launching pad for DOGE’s upward surge. If DOGE continues on this trajectory, it could reach up to $0.34, representing a further 82% increase. However, any positive momentum could be short-lived due to fundamental limitations and ongoing issues with Dogecoin’s architecture and use cases.

Dogecoin’s Future Growth Limitations

Despite a strong comeback, several factors cloud Dogecoin’s long-term future. One major setback is the coin’s lack of utility value outside of speculative trading. Dogecoin was initially created as a joke, while other top cryptocurrencies like Bitcoin and Ethereum were designed with specific use cases in mind. Currently, less than 2,500 stores worldwide accept DOGE as a payment method, limiting its real-world adoption and value compared to other mainstream cryptocurrencies.

Furthermore, Dogecoin’s inflationary nature adds another layer of hindrance to its attractiveness as an investment. Unlike Bitcoin, which has a finite supply of 21 million, Dogecoin’s supply is infinite, with an average of 10,000 new tokens being generated and entering circulation every minute. This strategy, unless accompanied by expanding use cases, leads to continuous dilution and makes it challenging for DOGE to sustain significant long-term price gains.

Over the years, Dogecoin’s development activity has also seen a drastic decline. In its latest analysis, Electric Capital ranked Dogecoin 81st in developer engagement, with only 21 full-time developers working on the project. This low level of development suggests that Dogecoin lacks continuous innovation and improvement, ultimately limiting its growth potential when compared to projects with strong development communities and roadmaps.

Dogecoin’s price is still heavily influenced by cycles of speculative hype, usually triggered by activity on social media. Without any significant technological development or practical application, the coin is highly volatile and largely unpredictable, as its value is primarily driven by community-fueled enthusiasm. The extreme hype witnessed in 2021 partly fueled some of the rapid gains; this might not be replicable in the current market landscape.

Rexas Finance (RXS): A Promising Alternative

While Dogecoin faces its challenges, a new cryptocurrency, Rexas Finance (RXS), is gaining attention in the crypto space for its approach to tokenizing real-world assets. This novel project offers a creative solution by providing investors with on-chain access to tangible assets.

Rexas Finance has been garnering immense support in its presale, with Stage 5 now being 77.84% complete. Having raised $6.19 million out of its $8.6 million target, the token is priced at $0.07 and has sold 120.6 million out of 155 million. One unique aspect that is attracting investors to the project is Rexas Finance’s $1 million giveaway program in RXS tokens, which has already seen 194,942 entries. This offer will be rewarding 20 winners with $50,000 in RXS each, driving community engagement and expanding the reach of Rexas Finance. Additionally, listings on three tier-one exchanges are planned for Q1 2025, with a projected listing price of $0.2. The initiative has also completed a security audit by Certik, boosting investor confidence.

Given the expected bull market and rising price of Bitcoin,