Dogecoin became a popular cryptocurrency in the first half of 2021, primarily due to social media buzz and endorsements from famous personalities. Although it was notably known for being a parody crypto, hence receiving the notorious title of “meme coin”, it has gained tons of traction over the years and continues to impact the crypto industry.
Dogecoin (DOGE) operates in a decentralized and open-source manner, intending to enable fast, efficient, and secure transfer of value. Initially developed in 2013 as a playful alternative to Bitcoin and other digital currency projects, the memecoin has been increasingly adopted by various companies worldwide as a means of payment for their products and services.
Despite the significant decrease in its price from its peak in May 2021, many investors still believe the coin has excellent growth potential, especially after Elon Musk's acquisition of Twitter for $44 billion.
DOGE, the digital currency that runs on the Dogecoin blockchain, attempted to push above the $0.076 level earlier in the day but has since fallen back. The decrease can be attributed to a spike in the US dollar and US yields and a decline in US stocks following hawkish comments from Federal Reserve Chair Jerome Powell. These factors have broadly impacted cryptocurrency prices, leading to the intra-day pullback.
Jerome Powell cautioned that the speed of increasing interest rates might rise and surpass expectations if inflationary pressures continue to be high, causing a negative impact on the prices of cryptocurrencies. As a result, Dogecoin experienced a pullback during the day and was trading at around $0.074, a decrease of approximately 1.0%, with its support levels at the low $0.072 range.
Despite the news of Dogecoin whales transferring large amounts of tokens from Binance to self-custody, the Dogecoin market remains pessimistic. Whale Alert, a blockchain monitoring Twitter account, reported that 67 million DOGE were moved from the world's largest exchange to an unknown wallet on Tuesday.
This transfer, which has been valued at around $5.0 million at current prices, has been tough on the Dogecoin market. Usually, when large amounts of tokens are moved off exchanges, it is considered a bullish sign for a cryptocurrency, as it suggests that the investors have no intention to sell them on the exchange. Conversely, significant inflows into exchanges are generally considered a bearish signal, as they may indicate an increase in selling pressure.
Dogecoins Price So Far
Undoubtedly, Dogecoin was one of the best-performing cryptocurrencies in 2021 and is still considered one of the top meme coins to invest in, especially with the belief that Elon Musk, one of the world's richest men, will use it on Twitter in some way.
Investors in cryptocurrency may already be familiar with the origins of Dogecoin, as it was initially created as a humorous project by two software engineers, Billy Markus and Jackson Palmer, who worked for IBM and Adobe, respectively. Their goal was to create a peer-to-peer payment system similar to Bitcoin but with less controversial associations.
In December 2013, Dogecoin was launched with a proof-of-work (PoW) algorithm similar to Litecoin. The coin quickly gained popularity, resulting in a surge of over 920% in the DOGE price in January 2014. However, the hype was short-lived, and the price of Dogecoin dropped back to $0.0002 and remained there for several years.
During the cryptocurrency bubble in early 2017, many people invested in Dogecoin, resulting in significant price increases. The subsequent years also saw similar price spikes. However, it was only in early 2021 that this crypto gained widespread attention and popularity. It saw a tremendous surge in price, going from $0.01 in January 2021 to its all-time high of $0.7579 in May 2021, representing a remarkable increase of over 7400%. However, this peak was short-lived, and investors who had bought DOGE started selling their holdings, causing the price to decline.
There is currently no official information on the potential use of Dogecoin, and as a result, the price of DOGE has begun to decline, briefly dropping below $0.10.
Price Prediction – Where Next for Dogecoin?
For approximately three years, the meme coin was well-known but needed to be actively traded, and there weren't any significant price movements for Dogecoin during that time. However, several charity initiatives and a supportive DOGE community helped the coin gain people's trust.
Since then, it has faced its share of ups and downs. But what’s next for Dogecoin price in the coming months and years?
Its supporters will be looking forward to the cryptocurrency maintaining support above the $0.072 level. If it fails to do so, it could result in a new decline toward the lows experienced by Dogecoin in late 2022, which were at around the $0.066 area.
Dogecoin's short-term outlook doesn't look good as it has recently fallen below its 200-Day Moving Average, which was at $0.0786, and the support in the form of the late February lows in the $0.0782 area. This is a bad sign for Dogecoin, and it would be challenging to rise above the resistance in the upper $0.07s without significantly improving broader crypto market sentiment.
The prediction for the next few months is that Dogecoin will rise and reach the resistance level at $0.2130, providing a 33% return from the current price. The next target after that is the psychological level of $0.3000, which is a complex area to break due to significant selling pressure. If Dogecoin manages to reach this level, it will result in an 87% return from the current price.