Dogecoin has had an interesting start in life and is definitely one of the more unusual cryptocurrencies that have been created. In its early days, there were very mixed reviews given about it but investors are now wondering if Dogecoin is worth adding to their portfolio in 2021. This altcoin has been around since 2013, but it is only newly successful.
Dogecoin was created as a reaction to the Shibu Inu dog memes which were popular in 2013. Because of this, many wondered if it was really worth investing in Dogecoin. However, despite the joke surrounding it, Dogecoin has managed to remain active in the crypto market and is finally seeing positive results.
In 2021 Dogecoin saw exceptional growth, bringing an end to the sideways trading patterns previously seen. Now that Dogecoin has earned its credibility, investors are keen to find out if Dogecoin will be the next cryptocurrency to explode.
As decentralized finance (Defi) becomes more popular, people are moving away from traditional banks and exchanges. Now that are other option out there, without the regulations and national restrictions, people are taking advantage of this new and growing version of global finance. Dogecoin is one of the cryptocurrencies which has benefitted from the increased adoption of Defi.
- Dogecoin: A Cheap Cryptocurrency
- The Dogecoin Trading Pattern
- Dogecoin’s Popularity
- Elon Musk and Dogecoin
- Will Dogecoin Rebound from the Last Correction?
- Predictions for Dogecoin in 2021 and the Future
- Dogecoin Trading Forecast for 2021
Dogecoin: A Cheap Cryptocurrency
One of the initial draws of Dogecoin was its price. Investors looking to get in on the ground floor of Dogecoin were able to do so cheaply. In 2021 Dogecoin is a much cheaper investment than Bitcoin or Ethereum so the amount of coin available for your initial investment is much greater and more attainable. There is not the same initial cost that the larger cryptocurrencies have and so there are more options for profits without large upfront costs and high risk factors.
Buying Dogecoin has finally paid off, particularly for those initial investors who have already seen huge returns. Even investments made in recent years have now seen large profits. Those investing at the beginning of 2019 could purchase Dogecoin for less than $0.002. At the current price of $0.37, those investments have increased by an incredible 18,500%. This proves that DOGE is a much stronger player in the crypto market than previously expected.
The Dogecoin Trading Pattern
The resistance period for Dogecoin was definitely a long one, even by cryptocurrency standards. Despite some substantial upward movement between 2013 and 2020, there was also marked sideways trading for Dogecoin during this time. But in 2021 there was finally a break in the unimpressive Dogecoin trading pattern.
Dogecoin saw its first surge in April 2021. After starting the month at $0.053 DOGE achieved a substantial increase peaking at $0.041. The correction that followed took Dogecoin back down by nearly 50%, but this was then followed by their second peak. This time DOGE reached an all-time high of $0.74, surpassing its previous goal of hitting $0.50. Although Dogecoin quickly corrected back down to $0.45 a few days later on the 11th of May 2021, this was still a great result for the altcoin. This momentum has continued and 2021 DOGE trading continues to cycle in energetic patterns never before seen for this cryptocurrency.
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One of the reasons that Dogecoin managed to survive long enough to reach its recent peak was its persistent supporters. Dogecoin may have described itself as fun and friendly as part of the joke that created it, but its approachable image led to a supportive crypto-community.
Although it may still have seen resistance in the wider crypto market, Dogecoin had over 1M hits on its website in the month after its inception. Later, Dogecoin supporters gathered through the Reddit platform to raise the profile of Dogecoin and get the cryptocurrency through its initial hurdles. By 2020 the Dogecoin community was even taking to TikTok to promote a push to get DOGE to $1.
It is no coincidence that Dogecoin has rallied when centrist financial sceptics have predicted its failure and this is largely due to the fanbase that its lovable image has created. Investors are hoping that this momentum will yield even larger profits as the altcoin’s popularity continues to grow.
Elon Musk and Dogecoin
One of the most famous and vocal Dogecoin supporters in recent years has been Elon Musk, the billionaire CEO of Tesla. Musk has been accused of manipulating the market using Twitter. His numerous tweets about decentralized finance and Dogecoin, in particular, have drawn a lot of attention.
Musk’s comments have ranged in seriousness. In May 2021 he tweeted a call-out for ideas to develop Dogecoin further even linking to a Reddit page to receive ideas:
‘If you’d like to help develop Doge, please submit ideas on GitHub & http://reddit.com/r/Dogecoin/ @Dogecoin_devs’
Elon Musk, via Twitter
However, later the same day Musk posted a much more casual tweet that seemed to joke about possibilities for Dogecoin.
‘Someone suggested changing Dogecoin fees based on phases of the moon, which is pretty awesome haha’
Elon Musk, via Twitter
Despite his varied tone when it comes to Dogecoin, it is clear that this cryptocurrency is at the forefront of his mind. These constant references to Dogecoin by Musk have helped to fuel the recent surges. Other celebrities have been coming out in support of DOGE with Snoop Dogg and Gene Simmons also commenting through Twitter.
Although the discussion surrounding Dogecoin on social media can be lighthearted there is clearly support building that is helping Dogecoin reach the highs that it has. As individuals look to invest, these fluctuations are becoming increasingly important for choosing the right moment to buy DOGE.
After Musk's SpaceX Twitter announcement which states that a Moon mission will be fully funded by Dogecoin, it is clear that the tycoon is backing DOGE going forward, which is a positive sign for the cryptocurrency’s future success.
Trading DOGE to USD
The current trading price of DOGE at the time of writing is $0.37 which is some way down from the highs of May this year. However, DOGE is moving upwards again as of the beginning of June.
The last three months of trading show the dramatic difference between the stagnation seen in April compared to the peaks and corrections of May going into June. Now that the crypto coin is showing greater movement there are far more opportunities to profit. These profits are both from the cycles themselves and the peaks in what will hopefully be a continued upward trend for Dogecoin in 2021.
Will Dogecoin Rebound from the Last Correction?
Although Dogecoin is back down to $0.37, nearly halving the all-time high seen in May, the returns over the past year are substantial and can not be ignored. As Dogecoin’s success has come after the explosions elsewhere in the crypto-sector, it makes sense that it would also enjoy the continued upward motion seen in the larger cryptocurrencies.
The drop comes as part of the correction period following the recent peak. Although it is a significant drop, it looks as though this will be one in a succession of peaks for the newly energised Dogecoin. If this proves to be the case then this loss would be regained during the next bullish cycle. This would follow the volatile cycles which are characteristic of the crypto market overall.
Predictions for Dogecoin in 2021 and the Future
Dogecoin has had a very exciting couple of months in May and June 2021 and things are looking good for the second half of 2021. Coinbase Pro’s launch of Dogecoin on their site has given Dogecoin the boost it needed to shift off of the bearish track that it was on. However, many cryptocurrency analysts are predicting that there will be a return of bearish trading, possibly during 2022.
Some experts have condemned Dogecoin as ineffective as a cryptocurrency, calling it:
‘...highly inefficient as a legitimate crypto coin except to those that use its volatility to trade it and hang on Elon Musk's tweets to pump up its value’
Andrew Kiguel, cofounder and CEO, Tokens.com
This opinion is shared by the author of MacroGeek Muneeb Jan, who also feels that the technology being used to run Dogecoin is not ready to compete at the same level as Bitcoin and Ethereum. The lack of smart contract functionality is considered to be the main pitfall, leaving DOGE reliant on Ethereum’s blockchain. While many are still unsure of Dogecoins continuation, some are favouring a delay rather than a collapse.
‘As more crypto brokers begin to offer Dogecoin, I see its popularity increasing, but it will take time before it is fully accepted.’
Dan Raju, CEO of Tradier
Like Raju, many feel that there will be more bearish periods to content with before DOGE can reach its full potential.
However, Elon Musk is amongst those who feel that once the coin is set on its next bullish cycle it will take over the Defi market, exceeding even Bitcoin for dominance. This is due to the Coinbase Pro development which some feel is enough to cause an explosion in Dogecoin prices. If this is the case then investing in Dogecoin now would lead to returns even greater than have those received by early Bitcoin investors.
Given the currency’s delayed spike in 2021, it is suggested that this will have slowed the overall growth trajectory. If this is the case then the cycles may become more drawn out with distinct bearish periods between the peaks. The bullish momentum that should come from the expanding Defi market should still see a steady increase for those who hold on to their Dogecoins. However, it is currently predicted that the growth will be slower than initially expected.
The volatile patterns seen so far in 2021 are the source of the conflicting feelings surrounding Dogecoin’s long term trajectory. The technology behind Dogecoin is felt to be unable to stack up to the major players like Bitcoin and Ethereum at this point. So, upgrades are a key feature to watch for when considering an investment in DOGE as they are likely to have a huge impact on shortening the predicted bearish cycles.
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Dogecoin Trading Forecast for 2021
The 2021 forecast for Dogecoin is positive given the addition of the cryptocurrency to the trading platform run by Coinbase. Although the long term predictions are more divided, there is a strong implication that 2021 will be bullish for DOGE. Given that we have seen DOGE pick up on the momentum of the expanding Defi sector this should fuel the next upward surge.
Now that Dogecoin is finally making strong movements in the crypto market things look promising. As the peaks continue this spells an end to the previous sideways trading. Although the bearish cycles threaten to take hold of the correction periods, DOGE looks as though it will remain positive for the rest of 2021. Despite the corrections following each of the peaks, there is likely to be profitable growth by the end of the year.
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Who is behind Dogecoin?
The concept for Dogecoin came from Billy Markus, an IBM software engineer. After he publicised the idea it was noticed by Jackson Palmer, an Adobe software engineer. The two joined to create the protocol for Dogecoin, which was primarily set up by Palmer. They then launched the altcoin as a joke to sit alongside the Shiba Inu dog memes in 2013.
What is Dogecoin?
Dogecoin is a crypto coin in the growing decentralized financial market. It is based on Luckycoin and Litecoin which came before it and used the Proof of Work protocol, similar to Bitcoin.
How does Dogecoin compare to the market?
Dogecoin is a much cheaper cryptocurrency than leading coins Bitcoin and Ethereum. However, Dogecoin ranks as the 6th largest cryptocurrencies by market capitalization. Its market cap of $48.5B leaves massive room for growth should Dogecoin realise its scalability.
Should I invest in Dogecoin in 2021?
There are positive indicators to suggest that Dogecoin will see at least one more substantial peak in 2021. This is due to the recent inclusion of DOGE on the Coinbase trading site which greatly increased the coin’s scope.
Is Dogecoin still going to go up?
As the Defi sector continues to expand Dogecoin should also grow and see its prices increase. DOGE has seen a drop in the past week and is going back up following this correction. This positive movement should continue and may lead to another peak or series of peaks as it moves towards the $1 mark.
What will DOGE prices rise to in 2021?
Many experts feel that it is inevitable that DOGE will reach $1 in 2021 after achieving their current all-time high of $0.74. Given that the peaks are occurring in an upward trajectory the next one is likely to hit $1. This trend would then see DOGE exceeding $1 towards the end of the year as the next bullish trading period takes off.