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Dogecoin has bottomed out, but upside potential is capped at 28%

  • Binance adds Dogecoin as a collateral asset on its cryptocurrency loans platform, boosting the memecoin's utility.
  • Development of the DOGE-ETH bridge suggested by Vitalik Buterin is underway; traders await upgrades in the ecosystem.
  • Analysts evaluate DOGE's price action and state that upside is capped at 28%.

Despite a rise in the token's utility, analysts are unsure whether the token will hit $1. Community of DOGE holders await technical upgrades in the DOGE ecosystem. 

Binance's loan platform as Dogecoin as a collateral asset increases DOGE utility

Analysts have identified a key reason for Dogecoin's capped upside potential, as limited upgrades in the DOGE ecosystem. 

After the Dogecoin Foundation was relaunched with Vitalik Buterin and Elon Musk stepping in as advisors, there have been suggestions for upgrading DOGE's ecosystem and making it relevant to the fast-changing crypto industry. 

Buterin recently suggested the development of a Dogecoin-Ethereum bridge. Buterin stated, 

I think if we can have a secure Doge-to-Ethereum bridge. That would be amazing, and then when Ethereum gets any scalability that works for Ethereum assets, you would be able to trade wrapped DOGE with very low transaction fees and very high speed as well.

A proponent of Dogecoin, @DogeWhisperer, informed the community that the development of the Dogecoin-Ethereum bridge is underway. 

The launch of the bridge is likely to boost the on-chain activity on the DOGE network, pushing the token's price higher. 

The world's largest exchange Binance has added to Dogecoin utility by including DOGE in the list of collateral assets on its crypto loans platform, alongside Solana. 

As Dogecoin's use cases increase, analysts examine whether the Shiba-Inu-themed cryptocurrency is likely to climb higher. 

Cryptocurrency trader and analyst @SZXBT believes that DOGE has bottomed. 

FXStreet analysts evaluate the memecoin's price action as it rebounds from the demand zone and predict that DOGE has upside potential; however, it is capped at 28%. 

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

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