This week could turn out to be a difficult one for Dogecoin investors, given the rejection of the token’s price from highs of $0.0952, unless it is able to maintain support at $0.075.

On Monday, the largest meme token in terms of market cap was down by 3% and was trading at a price of $0.0786, which put its market cap at $11 billion.

In 2023, Elon Musk’s favorite meme token has recorded gains of 18% and it should be noted that early last month, DOGE had managed to climb slightly above $0.1.

As the meme token records gains, investors are wondering whether DOGE will be able to hit the milestone of $1.

However, industry experts have advised caution because it might be some time before it is able to reach this milestone.

Will it rise?

Even though there is undoubtedly a lot of hype surrounding DOGE, the chances of the meme coin reaching the $1 mark anytime soon do not appear to be certain.

Some analysts have said that the price of the meme coin could reach $1 in the future, primarily because of the connection to Tesla’s CEO Elon Musk and the social media hype.

But, there are also analysts who are more skeptical of this happening. Even though there was recently a lot of excitement surrounding DOGE, it is facing an uphill battle when it comes to recording a price rise.

In order to reach the $1 mark, Dogecoin would have to record a rise of 1,100%, but this is considered improbable because of an inflationary supply, lack of real-world utility and applications and inability to generate its own price rise.

The reasons

The major reason that analysts hesitate in predicting a future rise in the price of DOGE is because of its lack of purpose and utility other than being a store of value and a means of exchange.

The meme token had been developed as a joke and even though it has an enthusiastic and loyal following, it is not used widely as a payment method.

Moreover, its lack of regulatory oversight in the broader crypto market and its high volatility make DOGE a risky investment for many people.

The following

Nonetheless, even though DOGE does not have any obvious utility, there is no denying that the meme coin has a huge following on various social media platforms.

Its Twitter followers alone have climbed to 3.7 million. The project recently tweeted that Dogecoin remains an open source and decentralized project and it is not under the control of one entity.