Dogecoin was the foremost meme coin and created a whole campaign of funny cryptocurrencies. This shifted into profound investments and generated huge profits for countless early investors. But now the question: Is DOGE dead? This post is all about the Dogecoin Price Analysis. Let’s take a look at it in more detail.
What is Dogecoin?
Dogecoin is one of the most widespread cryptocurrencies on the market. Not because of its technical quirks but the project was pitched as a satirical cryptocurrency to counter the hype encircling Bitcoin and different other new cryptocurrencies with something funny. It is an open-source cryptocurrency that is used by internet users globally. The design is based on Litecoin, implying that all developments will also be made to Dogecoin.
Dogecoin was the first so-called meme coin. The cryptocurrency’s sign was the Shiba Inu, a famous breed of dog that stands out on the sign with a perplexed look. This Shiba Inu has been an internet meme. Dogecoin capitalized on this buildup by making Shiba the symbol for the cryptocurrency. This started a new type of cryptocurrency, the meme coins.
As mentioned earlier, Dogecoin has proved itself as one of the most famous and also most stable cryptocurrencies. As early as 2016, Dogecoin pushed it into the top 10 cryptocurrencies by market capitalization for the first time. Dogecoin is an essential part of the community. In recent years, Dogecoin has confirmed again and again that it can grow in value massively in a bullish market condition. Famous people like Elon Musk are fans of cryptocurrency.
Dogecoin Price Analysis: Is DOGE Dead?
DOGE/USD Monthly chart – TradingView
In the past 6 months, Dogecoin’s price has decreased by almost – 59%. It has come down particularly after touching all-time highs of roughly $0.70 in May 2021. Many say that this price action was initiated by a huge selloff after the coin price increased tremendously in the first half of 2021. At the time of writing this, the DOGE price is sitting at $0.085.
The other issue could be Supply vs Demand. Supply is growing day by day and it seems like the demand is falling for meme coins (not just doge) regularly. It has a circulating supply of 132,670,764,300 DOGE coins in 2022 so far. Unless Doge discovers new investors to keep purchasing the supply, it is far-fetched that we will notice the earlier all-time high price again. The token is extremely inflationary.
The crypto market, all-around, began its bearish movement in November 2021. Most tokens achieved their rise before forming to adjust lower over a couple of months. Numerous macro affairs made this bearish movement more threatening, as most cryptos are decreased by an average of 50%.
For Dogecoin particularly, the initial drop began on May 10th, 2021. High expectations of a price boost emerged as Elon Musk took Dogecoin to a mainstream show called SNL. In fact, day traders took benefits weeks before the show and began to dump hours before the show aired. Since then, prices never drove to retrieve and entered a downtrend, touching the current price of $0.085.
Whether DOGE is dead, no one can say for sure, but it can nonetheless fall a lot more down and take days to ever back to its peak.
Dogecoin Price Analysis– Did Elon Musk Abandon DOGE?
DOGE/USD Weekly chart – TradingView
Tesla CEO Elon Musk’s tweets aren’t as influential for the cryptocurrency market or Dogecoin as they used to be. In May the Tesla CEO tweeted that Dogecoin has prospects as a currency. Yet, the DOGE price has not increased as it used to be after Elon Musk’s tweets. The reason could be some basic issues with the scalability and speed of the DOGE:
Dogecoin price touched a substantial buy zone delimited by $0.07 and $0.1. In February 2021, this spot was a decisive resistance region, where prices retraced more downward every time they touched this spot. The DOGE price has retraced bullish report consequence and Elon Musk tweet to decline further, in what has been a bear market so far – the retribution started in May 2021, after the Dogecoin all-time high of $0.74 touched on 8 May. Investors could embrace a dollar-cost averaging (DCA) technique, purchasing slowly to reduce their average entry cost and expect to thrash the market in that manner.
Conclusion
Dogecoin is a meme coin. In reality, it seems like it has no use, and neither does it fix anything. It was displaying a bullish behavior because of the buildup constructed by its community on various social media platforms and then backed by some famous people like Elon Musk. Nobody knows where Doge’s price is going, only time will tell.
