Dogecoin’s value has declined by 16.27% in the last month. However, history suggests that May could be a good month for the cryptocurrency, as it has seen positive returns in the past during this month. For instance, in May 2021, Dogecoin’s price surged from $0.33 to above $0.52 in just a month.
However, it’s important to note that the previous bull cycle was different. During that time, there weren’t as many memecoins sharing liquidity with Dogecoin as there are now. Therefore, it may not be able to produce the same performance this time around.
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How Close is this?
If the cryptocurrency does begin a bull run next month, the volume has to be at least 3x to 5x from its current value. Failure to do so might result in mild gains or sideways movement.
It’s also worth noting that the Bitcoin halving event occurred a few weeks ago, which could impact Dogecoin’s performance. Following the last halving, Dogecoin did not initiate its significant move until seven months later. Therefore, a significant rally might not happen next month, and instead, the altcoin might wait until November before it starts producing significant moves.
Memecoin Race may continue
Furthermore, the on-chain evaluation suggests that the current interest in Dogecoin is nowhere close to the interest it received during its rally in 2021. During that time, the volume was over $6 billion, and at its peak, it was over $42 billion. Currently, the volume is just $958.76 million.
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Overall, while the cryptocurrency may not produce the same performance as in the previous bull cycle, it still has good potential this cycle. If the broader market condition exits its consolidation phase to the bullish zone, Dogecoin might drive past $0.50 in the mid-term. However, this is not a short-term forecast that traders should rely on.