Dogecoin suffered from a massive crash in the latest FTX crash. In fact, the entire crypto market lost on average around 25%. Dogecoin lost 46% in the past 2 weeks. Now that prices stabilized around 8 cents, will Dogecoin reach 20 cents before 2023? Let’s analyze in this Dogecoin prediction article.
What is Dogecoin crypto?
Dogecoin emerged as the first meme token. Dogecoin was once created as a spoof of Bitcoin and was only meant to be used as a laughing stock. Nevertheless, as time went on, more and more people started investing in cryptocurrencies, which raised the price and made Dogecoin more well-known. The Shiba Inu dog meme, which serves as the Dogecoin emblem, had an influence on this as well.
The Proof-of-Work consensus algorithm is used by Dogecoin. The mining of ETH effectively came to an end with Ethereum’s formal transition to a PoS network. Dogecoin (DOGE) is now the second-largest PoW blockchain behind Bitcoin because Ethereum no longer has a PoW consensus. It has a lot of potential as a decentralized payment alternative to Bitcoin.
When did Dogecoin Start?
Dogecoin started back in December 6th, 2013. Two software engineers, Billy Marcus from IBM and Jackson Palmer from Adobe, created Dogecoin. It was created as a “joke” for popular cryptocurrencies like Bitcoin, and was motivated by the viral Doge meme featuring a Shiba Inu image.
Is Dogecoin PoS or PoW?
Dogecoin uses the Proof-of-Work consensus algorithm. The mining of ETH effectively came to an end with Ethereum’s formal transition to a PoS network. Dogecoin (DOGE) is now the second-largest PoW blockchain behind Bitcoin because Ethereum no longer has a PoW consensus. It has a lot of potential as a decentralized payment alternative to Bitcoin.
Why did Dogecoin price increase?
When Elon Musk officially became the “Chief Twit”, Dogecoin prices became to soar. After an extended consolidation between 5 and 8 cents, prices boomed and reached a high of 15 cents. In fact, there is a strong correlation between Elon, Twitter, and Doge which we explained in this article.
However, after such a price rise, smart investors know how to stay away from inflated assets. Prices were bound for an adjustment, and the FTX crash was the main catalyst.
Why is Dogecoin crashing today?
As shown in figure 1, Dogecoin prices were bound for an adjustment after such a price hike. The FTX crash became the clear catalyst that caused DOGE prices to adjust lower, crashing toward the current price of around 8 cents. Back in August, DOGE also found a resistance around the 8 cents price mark, which makes it today an important price area to trade Dogecoin.
However, Dogecoin is not the only losing crypto. All cryptocurrencies without exception lost in the past 2 weeks. Some more than others, however, and Dogecoin is among the top losers as the average loss in the crypto market was around 25%.
Dogecoin Prediction: Will Dogecoin reach 20 cents before 2023?
In order for Dogecoin prices to recover, there needs to happen two important things:
- The crypto market as a whole needs to show signs of recovery, as Dogecoin is directly correlated with the market performance (such as all cryptos)
- No additional negative fundamentals are to be announced in the coming 2 weeks
FTX was a clear crash catalyst for all cryptocurrencies. However, if the market starts to recover slightly, Dogecoin should be able to reach at least 15 cents before 2023. On the other hand, to reach 20 cents, more positive fundamentals need to happen, such as Elon announcing Twitter using DOGE or any other important piece of news. Reaching 20 cents with the current market dynamics is unlikely for the moment.
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