Dogecoin (DOGE) Cryptocurrency: Is It A Buy, Hold Or Sell Right Now?

Last Updated March 28th 2022

5 Min Read

Is this the right time to buy Dogecoin, the once-surging meme coin? Let’s find out.

The crypto space has become quite exciting, with meme coins, altcoins, and NFTs producing millionaires in months. Dogecoin (DOGE), the famous meme coin, has been a fan favorite for the past few years. DOGE’s value has leaped more than top digital assets like Bitcoin and Ethereum in the recent past. But with the crypto market at its lowest points, is Dogecoin a buy, hold, or sell right now? Let’s find out.

A Market-Beating Cryptocurrency — But For How Much Longer?

Dogecoin has evolved beyond a meme and has positioned itself as a profitable investment option.

Created as a joke in 2013 by two software engineers, Billy Markus and Jackson Palmer, Dogecoin was based on the popular meme of a Shiba Inu dog. The cryptocurrency was intended to be a fun competitor to Bitcoin. But surprisingly, Dogecoin gained quick traction and followers straightaway.

The social media hype around the coin has propelled DOGE to record highs. If Elon Musk or Mark Cuban, who have publicly voiced their support for Dogecoin earlier, tweet about it again, there would certainly be another price hike for DOGE.

However, Dogecoin’s mechanism is rooted in its intended usage as a highly accessible P2P method of exchange. A brilliant feature called the Scrypt algorithm distinguishes Dogecoin from other cryptocurrencies. This is a significant point of divergence from Bitcoin’s SHA256, facilitating much faster block creation and making DOGE much faster than BTC.

The transaction fees when sending DOGE are comparatively low, which makes it ideal for low-cost transactions. Moreover, companies like AMC, Tesla, GameStop, and Nordstrom have accepted DOGE as a viable payment method. If more companies start accepting Dogecoin, the increasing demand will eventually skyrocket the price of DOGE in the future.

Don't Miss: 5 Reasons Why Dogecoin Could Double Your Money

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

The Road Ahead For Dogecoin

The Dogecoin market is relatively healthier as the cryptocurrency has more developer funds than any other altcoins.

Although the price of DOGE is dropping, there are still reasons to be optimistic about Dogecoin’s outlook. The developers are planning to implement additional use-cases to boost the DOGE’s value proposition. Also, given the concerns around the sustainability of crypto mining, experts predict that Dogecoin will shift to a Proof-of-Stake validation model soon, making DOGE a good buy now.

Dogecoin - The Best Cryptocurrency For Tipping

The Dogecoin co-creator, earlier this year, tweeted his plans to announce his intention to raise the topic of the Twitter team implementing DOGE tipping. The petition named “Add Dogecoin Wallet Support to Tipping Feature on Twitter'' had garnered 6,156 supporters. He also added that approximately 77 million DOGE were tipped on the Reddit tip bot, which makes Dogecoin the most used cryptocurrency for tipping.

Celebrity Endorsement And Community Support

The key growth driver for Dogecoin isn’t the technology behind it but the community that has built up around it. Dogecoin has introduced the millionaires and billionaires of the future to blockchain technology with its fun characteristics. Dogecoin is a good short-term investment as it has strong support, both from retail investors and high net worth investors.

Moreover, Tesla would also begin to accept DOGE as a payment for the car maker’s merchandise, solidifying DOGE's position as a top meme coin to buy now. Musk has announced that the company's supercharging station will now accept Dogecoin as payment.

The acceptance of DOGE by Cuban's Dallas Mavericks and Tesla would further pave the way for more companies to accept DOGE as a method of payment, increasing demand for Dogecoin.

Partnership And Future Prospects

Dogecoin has already begun taking steps in enhancing its network and widening its reach to the DeFi space. Yahoo Finance recently reported that DOGE can now be purchased on a decentralized exchange for the first time. The coin is currently listed on THORchain. With the coalition, THORchain users can now swap DOGE for BTC and other tokens. Also, DOGE holders can generate a yield on their investment through ‘yield farming’ without even completing any KYC checks.

DOGE will definitely benefit from the expanding network and its developments in the DeFi space. Crypto investors need to keep this in mind when investing, as the DOGE price will shoot up once definite milestones are achieved. Moreover, if Dogecoin can capitalize on this momentum and partner with more decentralized entities, it will further boost DOGE’s price and increase the ROI.

Is Dogecoin a Buy, Sell Or Hold?

Dogecoin is a buy now as it has entered now slightly into the ideal buy range. The relative strength line has been recovering. A rising line means Dogecoin is now beating the cryptocurrency market performance. That’s positive for growth cryptos.

The preferred outlook on Dogecoin from analysts signals a buy rating as the meme coin looks reasonably bullish. In 2021, DOGE’s coins made a strong start, with steady gains in the first quarter. Although, in recent times, its tokens have shown no real direction, till late March.

As a result, there are limited arguments against the coin, although the uncertainty of the market can play a significant role in Dogecoin valuation.

Check Out: Dogecoin (DOGE) Price Prediction

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

So is DOGE a buy? This would also depend on your investment strategy, risk appetite, budget, and your future goals in the crypto investment arena. Analysts predict that despite the downturn, Dogecoin overall has a positive outlook in 2022.

Ever since the price of DOGE has started plunging, several investors are considering selling Dogecoin this year. But Dogecoin is slowly gaining value from its wider acceptance as a medium of exchange. Moreover, the coin still benefits from incredible backing from social media communities.

However, the request for Twitter tipping in the pipeline and Dogecoin’s low fees suitable for online tipping have given the crypto real-world use cases. These use cases are highly significant for Doegcoin’s long-term success, as high price levels cannot be sustained merely by speculation and retail buying.

Dogecoin is, so far, one of the best meme coins in the cryptocurrency market. With incredible highs and dramatic lows, DOGE has had a volatile past. Its price history has thus made people realize that DOGE will eventually be a more profitable investment for short-term holdings.