The latest on-chain metrics for the leading meme cryptocurrency have indicated that the mining difficulty and hashrate are still in the high-level zone despite the weak price performance of the token.
Dogecoin has recorded the most modest improvement in price action, barring the occasional turbulence that it has to undergo with other cryptos in the market. Still, the demands on the mining difficulty and hashrate are challenging for the meme coin.
Evaluating the High Hashrate
Every cryptocurrency that experienced a high hashrate could indicate the traders’ and miners’ attitudes towards a particular cryptocurrency.
Suppose there is a high hashrate and difficulty in a cryptocurrency’s network. In that case, it is considered a bullish trend as it shows miners are ready to support block development on the network and, in addition, maintain the flow of new coins into the market.
However, if the hashrate is swift and on the increase, miners are expected to expend more resources processing newer blocks. The difficulty always increases at this level, barring an event like the Bitcoin halving.
The price of the mined asset is the glue that keeps miners and the hash rate in the same category. As for Dogecoin, the attractiveness of mining has been lower in the past 120 days, and the simple reason for this is the negative price performance of the meme token.
Market Performance for Dogecoin
The short-term recovery of the crypto market has boosted many of the tokens, but it was not enough to make the price action of the meme coin positive for the majority of the weeks this year.
Since January, Dogecoin has lost about 30% of its value regardless of the 20% brief recovery in March, which can be translated into another positive outing.
Compared to other altcoins like Cardano and Solana, the most recent uptrend for Dogecoin does not appear to be a reversal, much less a strong rally; the single resistance that the first meme token has succeeded in breaking is the 50-day moving average.
The 50-day moving average supports the DOGE token during the market correction phases and the brief recovery period. Still, it retraced back by 14%, causing more problems for the meme coin.
In the previous price analysis, Dogecoin was reported to have been in a bullish uptrend, culminating in the different forecasts for the token, suggesting consistent positive price action for some time in the next couple of months.
Even though Dogecoin’s performance in the market is a combination of ups and downs, analysts believe that the meme token has what it takes to become established in terms of price performance.
Meanwhile, the price performance has been bullish for as long as the general crypto market continues to appreciate. The following line of action is how price action can be controlled to achieve optimum market value.
In the meantime, further positive performance is expected from Dogecoin, but the question on the lips of many is, can Dogecoin surpass the expectations?