KazPost

Kazakhstan News
Friday, Mar 29, 2024

3 Signs Say That Dogecoin Price Will Rise Again

3 Signs Say That Dogecoin Price Will Rise Again

When investors started promoting #DogeDay last weekend, the 4/20 holiday was meant to send Dogecoin prices higher. For a moment, $1 DOGE even seemed possible.

Instead, investors witnessed a stinging loss. Dogecoin prices fell 25% on lower-than-anticipated volume, erasing gains from the day before.

As investors consider their next move, people are starting to ask themselves, “Will DOGE prices rise again?” For an asset that moves on celebrity tweets, there’s little reason to expect a definitive answer. But for those looking for hints, here are three reasons why Dogecoin prices could rise again — and three reasons why they might not.

Reason #1 Why DOGE Prices May Rise Again: Greater Adoption

#DogeDay highlighted one fact: People are adopting Dogecoin. And that’s great news for DOGE prices.

The world of cryptocurrency works much like Betamax video and fax machines: Popular formats tend to dominate. A currency is valuable only if others accept it, so even technologically older cryptocurrencies like Bitcoin can remain winners.

Dogecoin’s 2021 rise has planted the seeds for similar success.

As Dogecoin’s profile has risen, developers and merchants have started paying attention. On Tuesday, Newegg and several other e-commerce sites began offering Dogecoin as a payment option. New trading platforms look to follow suit. These moves put Dogecoin on a winning track — as more people use the currency, there’s a greater chance that Dogecoin will survive rather than disappear.

Reason #2: Positive Momentum

In the long run, Dogecoin has proved remarkably resilient. Since 2014, drops of 15% or greater were followed by an average of an 11.3% return over the subsequent month. In other words, those buying the dip would have profited in the past.

The strategy, however, isn’t for the faint of heart. After losing 17% in a single day in September 2017, Dogecoin shed 43% more of its value. Past recoveries also never guarantee future successes.

Still, momentum remains one of the most potent predictors of cryptocurrency performance. Relatively speaking, Dogecoin’s 25% loss on Tuesday looks like a short-term buying opportunity rather than a complete reversal of fortunes.

Reason #3: People Like It

Even if #DogeDay didn’t send DOGE to $1, it still highlighted the coin’s “X-factor”: People like the coin. Never mind that DOGE remains a clone of Litecoin — a cryptocurrency that can trace its roots back to Bitcoin. The meme-coin’s fans don’t seem to care.

Today, Reddit’s r/Dogecoin subreddit counts almost 1.5 million subscribers, making it one of the most popular forums on the site. Celebrities like Elon Musk and made-up characters like Slim Jim regularly post tweets in support.

It’s hard to overstate the power of popularity. Wine lovers have long known that the best-tasting wines aren’t always the most expensive — a fact highlighted in the 1976 “Judgement of Paris” blind taste test that saw Californian wines beat better-known Bordeaux competitors.

Dogecoin, too, has harnessed that same power. Memes continue exploding on Twitter, gathering thousands of “likes” and convincing newer buyers to test the waters. If Dogecoin’s popularity continues rising, its $38 billion return since January might be the start.

Reason #1 Why DOGE Prices May Not Rise Again: Lagging Development

There are still reasons to be cautious.

Despite Dogecoin’s rise, the cryptocurrency has seen slight uptick in developer interest. In 2021, only four contributors have made any changes, most of them relatively minor. Meanwhile, currencies like Cardano have seen thousands of new commits.

A significant reason is that Dogecoin developers lack money. Cryptocurrencies like Cardano and Ethereum set aside funds early on from their initial coin offering (ICO), while Dogecoin developers work for free.

Dogecoin investors could turn the tables — the top-12 wallets share almost $20 billion worth of cryptocurrency. But until then, investors will have to hope that third-party developers will continue adding Dogecoin support regardless.

Reason #2: Size

Dogecoin started the year as a $600 million cryptocurrency, placing it among lesser-known coins like Lisk and Mdex. As Dogecoin has risen, however, its upside has decreased.

Today, Dogecoin doesn’t have the same one-sided potential for gains. Increasing another 65x (as it has since January) would make the coin worth $2.6 trillion, or more than all cryptocurrencies today. No current investor will repeat the winnings of early DOGE investors.

Reason #3: Competition

As Dogecoin has risen, alternative meme coins have quickly gained traction. SafeMoon, a coin launched less than a month ago, has quickly dethroned Dogecoin as the internet’s most searched coin. Others like PirateChain have seen even faster gains, rising nearly 200% in a week.

These newer coins may pose a growing problem for Dogecoin. As trading platforms continue adding altcoins, Dogecoin fans could find it harder to keep garnering attention.

Conclusion: Should You Buy the Dogecoin Dip?

Dogecoin fans have long focused on memes over development. And DOGE’s largest holders haven’t helped much either.

But those looking for their first taste of cryptocurrency could do well to buy a couple of hundred dollars of Dogecoin and join the community. Because as investors will quickly learn, Dogecoin has never been about getting rich — most investors are small-time holders. Instead, the meme coin has arguably been about having fun and making some money in the process.

Dogecoin might yet reach $1. Just don’t take the joy out of it by betting your house.

Source: Fintechs.fi – Fintech News

Newsletter

Related Articles

KazPost
0:00
0:00
Close
It's always the people with the dirty hands pointing their fingers
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
Europe is boiling: Extreme Weather Conditions Prevail Across the Continent
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
40,000 child slaves in Congo are forced to work in cobalt mines so we can drive electric cars.
Historic Moment: Edgars Rinkevics, EU's First Openly Gay Head of State, Takes Office as Latvia's President
An Ominous Shift in Warfare: Western Powers Risk War Crimes and Violate International Norms with Cluster Bomb Supply to Ukraine
Bye bye democracy, human rights, freedom: French Cops Can Now Secretly Activate Phone Cameras, Microphones And GPS To Spy On Citizens
The Poor Man With Money, Mark Zuckerberg, Unveils Twitter Replica with Heavy-Handed Censorship: A New Low in Innovation?
The Double-Edged Sword of AI: AI is linked to layoffs in industry that created it
US Sanctions on China's Chip Industry Backfire, Prompting Self-Inflicted Blowback
Meta Copy Twitter with New App, Threads
The New French Revolution
BlackRock Bitcoin ETF Application Refiled, Naming Coinbase as ‘Surveillance-Sharing’ Partner
Corruption in the European Parliament - Business as usual
UK Crypto and Stablecoin Regulations Become Law as Royal Assent is Granted
Paris Suburb Grapples with Violence as Curfew Imposed: Saint-Denis Residents Express Dismay and Anger
A Delaware city wants to let businesses vote in its elections
Alef Aeronautics Achieves Historic Milestone with Flight Certification for World's First Flying Car
Google Blocked Access to Canadian News in Response to New Legislation
French Politicians Advocate for Pan-European Regulation on Social Media Influencers
×