Doge price prediction: all hands on hype
The coin was never meant to be a serious project
The price of Elon Musk’s favorite cryptocurrency is 66% below the historical maximum. Experts explained why Dogecoin may return to peak values and in which case its price will continue to fall.
Meanwhile, Elon Musk supported the proposal of the developer of Dogecoin (DOGE), Patrick Lodder, to reduce the commission in the meme cryptocurrency network and increase its decentralization. According to him, due to the increase in the value of the cryptocurrency in relation to bitcoin and the US dollar in 2021, the recommended commission of 1 DOGE “unnecessarily constrains transactions” on the network.
On Monday, June 28, the Dogecoin exchange rate on the Binance crypto exchange increased by 5%, to the current level of $0.25. The altcoin price is recovering after it fell to a local low of $0.16 on June 22. Despite the fact that the cryptocurrency has risen in price by almost 56% over the past week, it remains 66% below the historical maximum of $0.73 set in early May.
DOGE stays at the bottom
It is quite difficult to call the Dogecoin project something serious, because the popularity of the coin and, ultimately, the impressive growth was brought primarily by the tweets of Elon Musk. The collapse of the altcoin’s value occurred after the billionaire stopped aggressively supporting it. In the long term, Dogecoin may leave the top 20 cryptocurrencies.
By market capitalization, Dogecoin remains in the top 10 cryptocurrencies, so it is likely that in the near future it will move in the wake of sentiment on the main coins, as well as react sensitively to Musk’s statements about supporting the project.
The last time the CEO of Tesla and SpaceX supported Dogecoin was on June 28. He responded approvingly to the proposal to update the cryptocurrency network, which states that the average transaction fee in the altcoin blockchain should be reduced by 100 times.
“However, the shakiness of the fundamental basis of the DOGE coin calls into question its stability and sustainability. We do not exclude that in the long term, Dogecoin may leave not only the top 10, but also the top 20 cryptocurrencies by capitalization.
Dogecoin is looking for a foothold: “Long-term goals for Dogecoin are at the level of $1”
Currently, Dogecoin is an investment-attractive cryptocurrency. He explained that fundamentally, the cryptocurrency has a lot to develop: both technologically, in the direction of cheaper transactions and scaling the network, and investment, in terms of increasing capitalization against the background of growing demand for this cryptocurrency.
The current Dogecoin is the optimal combination of high capitalization and the “low base” effect, when the asset is relatively cheap, but, at the same time, has a significant number of investors and may well be an element of the “aggressive” part of the investment portfolio. The expert pointed to the fact that the largest altcoin holders did not sell the asset against the background of a fall from $0.75 to $0.15. This may indicate the expectation of further growth.
I expect that in the next few months, the Dogecoin rate will be able to recover to $0.45-$0.5, and the long-term goals for the altcoin are at $1. The current prices are optimal for the purchase of this asset with the expectation of a price recovery before the end of the year.
The entire potential growth of Dogecoin depends on the HYPE
The power of social impact is still the main driver of growth for Dogecoin. As long as Elon Musk continues to mention the coin with some frequency, it will show high volatility. It is important that the market trend changes to an upward one, then we will be able to see more than one record for Musk’s “favorite cryptocurrency”.
He added that if the market resumes growth, then altcoin will have a chance. However, in the conditions of a fall or consolidation, Dogecoin is likely to behave worse than the market.
It is still difficult to imagine what could affect DOGE in the future. From a technical point of view, the project is useless, as well as from the point of view of security and distribution of assets across wallets. The project probably has no future. All potential growth depends only on the influence of media personalities on investors and the “hype” effect.