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Dogecoin stays below $0.10 despite deflationary model

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A consolidating DOGE chart
A consolidating DOGE chart

Key takeaways

  • DOGE is down 0.5% and continues to trade below the $0.10 psychological level.
  • The coin has been consolidating and could rally higher in the near term. 

Dogecoin (DOGE), the largest meme coin with a market capitalization of $14.27 billion, represents over 0.50% of the $2.49 trillion cryptocurrency market as of Wednesday. 

Dogecoin underperforms despite a disinflationary model

Dogecoin defends its inflationary model, stating that inflation will decrease gradually to 3.1% from 3.6% as the total DOGE supply increases. 

The assumption driving this claim is that demand for the meme coin will remain steady, supported by its robust community that uses DOGE for tipping, institutions launching DOGE-focused Exchange Traded Funds (ETFs), and its growing use in Decentralized Finance (DeFi) services.

While the narrative suggests a stable demand, it may not guarantee sustained positive pressure on DOGE’s price.

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While Dogecoin’s fixed issuance model reduces inflation relative to the increasing supply, it does not necessarily reduce the overall supply, as deflation would. The continued minting of 5 billion DOGE per year could become a persistent downside risk, especially during periods of low demand.

Dogecoin’s strategy emphasizes practical usage as a currency rather than hoarding, and it incentivizes miners to secure the network. However, the ongoing supply pressure may limit the effectiveness of this disinflationary model in the long term.

In addition to this, institutional demand for DOgecoin remains muted. Since the launch of DOGE spot ETFs on November 24, there have been just 15 days of inflows, totaling a net asset value of $10.80 million. With 79 days showing no flows and two days with net outflows, institutional interest in DOGE remains limited.

The Dogecoin Treasury currently holds just over 780.54 million DOGE, which represents 0.51% of the total DOGE supply. Gaining further institutional support is key for Dogecoin to progress into the global financial system, providing the demand necessary to support the disinflationary model.

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DOGE could rally above $0.10 if the bulls regain control

The DOGE/USD 4-hour chart remains bearish and efficient despite the broader crypto market rallying recently. At press time, DOGE is trading at $0.094 after rejecting at the $0.098 swing high earlier this week.

The RSI of 55 is above the neutral 50, indicating a fading bearish momentum. The MACD lines are also above the zero region, adding further bullish narrative to the pair.

DOGE/USD 4H Chart

If the bulls regain control, DOGE could surpass the $0.098 swing high and hit the $0.10 psychological level for the first time since March 16.

However, if the bearish correction persists, DOGE could retest the Sunday low of $0.09012 in the near term.

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Crypto World

US Midterm Election Mirrors 2024 with Crypto Moving into Ohio Races

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Cryptocurrencies, Politics, Funding, United States, Elections

Another political action committee (PAC) aligned with the cryptocurrency industry announced its endorsement for a candidate in Ohio’s Senate race, signaling a move that could mirror the 2024 US election.

In a Wednesday notice, Sentinel Action Fund, a group that claims to be the “only conservative Super PAC advancing pro-crypto candidates and supporting pro-crypto innovation,” said it would be supporting Republican Jon Husted in this year’s race to represent Ohio in the US Senate. 

Husted was appointed by Ohio Governor Mike DeWine in January 2025 to replace JD Vance, who was elected vice president alongside US President Donald Trump in his 2024 election win. He still faces a field of Republican candidates ahead of a May 5 primary in Ohio, where former Senator Sherrod Brown will also face off in the Democratic primary against Ron Kincaid.  

Sentinel Action Fund President Jessica Anderson specifically cited Brown as having “stood in the way of pro-innovation policies when it comes to digital assets” in the PAC’s endorsement of Husted. 

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Although filings with the Federal Election Commission (FEC) as of Tuesday showed no disbursements supporting Husted in 2026, the PAC and its sister organization, Right Vote, pledged to spend more than $8 million in the Buckeye state. The Sentinel Action Fund reported about $9 million raised from January 2025 through March 2026, including $750,000 in contributions from the digital asset advocacy organization Solana Policy Institute and $250,000 from crypto investment company Multicoin Capital.

Cryptocurrencies, Politics, Funding, United States, Elections
Total raised by Sentinel Action Fund Super PAC as of March 31. Source: FEC

The PAC’s move into the Ohio race could serve as a bellwether for how money from crypto-aligned interest groups will respond to the upcoming US elections. In 2024, crypto-backed PACs spent more than $40 million in the US State to support Republican Bernie Moreno’s run to unseat Brown, who had made many public statements criticizing crypto.

Related: Coinbase-backed crypto advocacy group unveils 2026 election plan

Despite having lost his seat, Brown announced in August that he would run again for Senate. Moreno’s seat won’t be up for grabs until 2030.

Ohio Senate race isn’t the only one in the state focused on crypto

Vivek Ramaswamy, a former Republican candidate for US President and one of the backers for Bitcoin (BTC) treasury company Strive, has also thrown his hat into Ohio’s gubernatorial race.

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Launching his campaign in February 2025 following his departure from Trump’s Department of Government Efficiency (DOGE), Ramaswamy supported efforts to create a strategic BTC reserve in Ohio.

However, many critics have pointed to the Republican candidate’s financial disclosures filed on April 6 as examples of conflicts of interest. 

Ramaswamy reported a 10% stake in Strive and could benefit from the value of the company’s Bitcoin holdings increasing in response to Ohio’s treasury investing in the cryptocurrency, which he would have significant influence over as governor. Strive reported holding about 13,768 Bitcoin as of Wednesday, worth more than $1 billion.

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Disclosure: A member of the immediate family of Staff Editor Robert Lakin has contributed to the campaigns of Ohio Democratic gubernatorial candidate Amy Acton and Ohio Democratic Senate candidate Sherrod Brown in amounts less than $200.

Magazine: Bitcoin will not hit $1M by 2030, says veteran trader Peter Brandt