The recent crypto crash took a heavy toll on all cryptocurrencies. Dogecoin specifically lost more than 83% since November 2021. Today, most tokens reached their strong support as Bitcoin and Ethereum linger around 20k and 1k respectively. Dogecoin price in particular reached its low and is attempting to reverse upwards. Should you consider buying DOGE at current prices? In this Dogecoin price prediction article, we analyze DOGE prices from a technical perspective. Let’s analyze ?
What is Dogecoin (DOGE)?
Dogecoin is one of the most well-known cryptocurrencies. The project was established as a cryptocurrency spoof to offset the frenzy around Bitcoin and numerous other new cryptocurrencies with something hilarious, not due to its technological quirks. It is an open-source cryptocurrency used by internet users all around the world. Because the structure is built on Litecoin, all updates will be provided to Dogecoin as well.
Famous entrepreneur Elon Musk helped in pushing Dogecoin to the mainstream, thanks to his funny and controversial tweets. This phase helped the crypto market in general as well, as more people became familiar with cryptocurrencies in general. This “hype” ended soon afterwards, as the market became overbought and collapsed.
Why is Dogecoin a speculative cryptocurrency?
Traditionally, investors seek to invest in problem-solving projects. Not only will those projects prosper in the long term, but also provide a steady cash flow thanks to stable prices and high payouts. For cryptocurrencies, current investors are seeking growth potentials in prices. If a certain cryptocurrency is not appreciating anymore, why buy it, especially if it does nothing in return?
It all started when Dogecoin was announced, a cute dog as a cryptocurrency mascot. Everyone liked the idea and bought small amounts “just for the memes”. But when Elon Musk, the first public figure to back cryptocurrencies, decided to back it up and started to tweet about it regularly, prices started to shoot way high. The coin was initially stuck around USD 0.05. Thanks to Elon, the coin rose to its all-time high price of USD 0.70 with an incredible market capitalization of USD 89 Billion. However, the collapse of the crypto market and Elon’s lack of Doge Tweet took a toll on the cryptocurrency. Prices crashed back to reach a current price of USD 0.07.
Dogecoin Price Prediction – Should you Buy DOGE today?
The current price of DOGE is sitting around $0.07. A strong buying surge occurred pushing prices upwards from the bottom of $0.05. This hints at an end to the downtrend. However, we need to keep a closer look at the crypto market in general. Despite the small uptrend that DOGE managed to pull from the low of $0.05, it would be advisable to wait for a slight retracement towards $0.055. If prices manage to break the $0.08 price mark, we can expect a continuation of the uptrend until we reach the strong psychological price of $0.10.
However, this all depends on the cryptocurrency market as a whole. If the crypto market goes back bearish, DOGE can easily drop back to the support price of $0.05. Any break below this will most likely lead to lower prices, specifically $0.04 as a first step.
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Source: https://cryptoticker.io/en/dogecoin-price-bullish-chart-confirms-reversal/