Since Dogecoin hit the market, it has proven to be a worthy investment option for investors. The popular meme coin is a decentralized, open-source crypto designed to facilitate the transfer of value quickly, efficiently, and securely. It was one of the standout performers in the crypto market, initiating a meme coin frenzy within the crypto sphere.
The crypto quickly gained popularity across social media platforms thanks to its fun logo of a Shiba Inu dog. One of the key catalysts for its price rise in 2021 was high celebrity endorsement and support from a dedicated Dogecoin community.
Although DOGE fell in value, along with other cryptos, in 2022, the meme coin is slowly regaining its status, and experts believe that the price could see another bull rally soon.
Factors That Affected Dogecoin’s Price
The increased hype and popularity of Dogecoin made it a viable payment alternative with low transaction fees for merchants across the globe. There are over 1900 merchants that accept DOGE as a payment, and the list includes established names like Tesla, Dallas Mavericks, etc. The crypto is also used for tipping services, allowing Reddit and Twitter users to send quick gifts to other users.
Strong Community Support
Its dynamic and staunch value has created a strong fan community that puts faith in its rise. The Dogecoin communities on social media platforms like Twitter, Reddit, and TikTok have rebounded from time to time, to make DOGE popular and acceptable in the mainstream. Therefore, it is no secret that social sentiments have increased the adoption rate of this crypto to new highs over the years, making it one of the most sought-after cryptos in the market today.
The Musk Factor
From billionaire American corporate heads to Hollywood stars have actively promoted Dogecoin across social media platforms in its initial days. The biggest name among them is none other than the billionaire and CEO of Tesla, Elon Musk. Musk started hyping the coin since 2020, which grabbed the attention of other celebrities and investors. Tapping into the already high social media hype, Musk tweeted that it is the “people’s crypto” and went as far as to call himself the “Dogefather.” His regular tweets championing the meme coin skyrocketed it to all-time high values. Since Musk’s Twitter takeover, there has been sufficient community-anticipation that DOGE might get listed as the official cryptocurrency of Twitter. If that happens, the crypto will most certainly reach new all-time highs.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Dogecoin Social Sentiment Surges To October 2022 Levels
One of the significant growth drivers for any leading coin is the popularity, support, and fan wave revolving around them. And Dogecoin proved this in 2021, with its price hitting an all-time high of $0.7376 in May, followed by hype, celebrity endorsement, and community support. However, the 2022 crypto market crash adversely affected the DOGE's price, bringing it significantly down from its all-time high. But according to reports, social sentiment around it is slowly regaining its pace and has not been this positive since October of 2022, when DOGE pumped 160%.
Crypto enthusiasts believe that a key catalyst for this could be Elon Musk’s takeover of Twitter in 2022. DOGE’s rally in Musk’s takeover of Twitter was initially positive, and experts believe that this could again take Dogecoin to the moon. Also, the fact that Musk SpaceX is ready for launch and around the corner, and the mission is funded entirely by Dogecoin will boost its value in the long term.
The sentiment chart clearly shows the eventual rise in DOGE prices. Previously a rise in DOGE’s social volume and the weighted sentiment was when it rose above $0.14 in the first half of 2022.
DOGE Can Rally Off Social Sentiment Alone
Over the years, Dogecoin has proven that it can rise high merely based on social sentiment, and the real value lies in the confidence the buyers have and the community support it gets. At the time of writing, DOGE is trading at a price of $0.088, down over 2.3% in the last 24 hours but up around 5.45% in the last seven days.
Although it is a highly speculative crypto, if DOGE repeats the history and follows the same trend of October 2022, it is possible for the crypto to clear its resistance level and reach $0.1 shortly.
Dogecoin can also go further upside if the positive sentiment remains consistent and high, making it a good buy now. The crypto has plenty of room for growth as there is a lot of potential in the digital payments space. Also, the DOGE price could see another bull rally soon as Musk considers integrating a new payment system into Twitter. Speculations say that the well-liked meme coin would be his top priority as one of the payments.
However, despite these use cases and popularity, the crypto lacked strong fundamentals and utilities. But the core team is working vigorously to upgrade its blockchain with several bugs and features like memory management that can reduce high network traffic.
Another promising factor that could push DOGE's price in 2023 is the team’s plan to enhance the token’s utility. The major focus is to make DOGE highly efficient to its users for payments and make it mainstream. The increased adoption rate and additional use cases would significantly boost the coin’s value proposition.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
A Final Word
Regardless of any development or predictions, hype on this meme coin has historically foreshadowed market conditions. If things go as planned, the Dogecoin price could see another bull rally soon. However, the meme coin is a highly speculative investment option, and investors are advised to conduct thorough research before investing.