There was once a time when Dogecoin was all the rage, making headlines left, right, and center in 2021. A time when there was so much hype about it that even billionaires got roped in.
However, its hype has since died down and its meme coin status might not aid much in its recovery.
Anyone interested in Dogecoin might be curious to know what Dogecoin has going for it that will help it recover to previous highs.
Dogecoin’s woes started when Tesla CEO Elon Musk described it as a hustle during a Saturday Night Live show.
It’s been a downhill trend since then and the bear market made things worse.
The meme coin managed to achieve some bullish recovery in the last four weeks after bottoming out in mid-June.
It recovered by more than 50% from its latest 2022 low of $0.049 in June to $0.076 on 20 July. However, it pulled back just shy of a key Fibonacci retracement line.
Source: TradingView
Nevertheless, Dogecoin’s latest rally is a sign that it still has a strong community. In addition, it has managed to maintain the top spot as the biggest meme coin by market cap and that has to count for something.
It had a $9.1 billion market cap at press time, which is better than most of the top cryptocurrencies that have robust utility within their networks.
Healthy puppies
DOGE has a lot more going for it. For example, whales have been gradually accumulating it in the last 30 days. There were some outflows in the addresses with the most significant balances between 17 and 19 July.
However, those addresses are once again accumulating Dogecoin. This means the newest selling pressure might be limited.
Source: Santiment
That being said, DOGE also happens to be one of the cryptocurrencies with a strong social presence.
Its social dominance metric has been quite active in the last 30 days and especially in the last 24 hours at press time. This is likely due to the announcement of some network upgrades.
Of course, the upgrade goes hand in hand with the strong development activity that Dogecoin registered in the last few days.
Source: Santiment
Healthy development activity resulting in a network upgrade is perhaps one of the best signs of a solid focus on future growth. A strong community is the icing on the proverbial cake.
