The meme cryptocurrency that erupted in the crypto markets during most of 2021 is rising again. With billionaire investors like Mark Cuban and Elon Musk being bullish on the coin, can Dogecoin actually go to the moon ?
Let’s discuss why dogecoin is going up and if it could reach $1 soon.
What is Dogecoin’s price ?
Dogecoin has been one of the stand-out stars despite having little utility, and it even momentarily eclipsed automobile giant Ford Motors in a rush to the $1 mark. The Bitcoin knock-off is up almost 8% in a market climate that has seen Ethereum struggle for growth. This points to a good time to buy DOGE as meme coins take centre stage once again.
While Doge still has some time before it can catch up to Bitcoin, the digital asset is considered a more suitable successor to the ancient blockchain network.
DOGE was up 7.99% at the end of last week, but has since corrected by over 3% and is now worth $0.243519. With a 24 hour trading volume of over $2.1 billion, Doge is currently the 10th biggest cryptocurrency in the world in terms of market cap.
One week gain of almost 8% shows a strong interest in the meme king. The token controls much of the meme coin sub-sector and has a 1.38% market dominance in the overall blockchain space. Last week’s rally aided its price as its market cap shot up 8.12% to 33.9 billion with a 24-hour trading volume of $4.7 billion after showing a 332.96% spike in trading activity.
DOGE’s strong bullish run comes as Bitcoin sheds its gains in the last 24 hours. The benchmark crypto-asset surged to $62,888.88 in the early hours of 17th October, and has since revived to reach an all-time high of almost $67,000. Currently, it has corrected and is trading above the $63,000 zone.
Dogecoin Technical Analysis
The digital asset’s technical indicators show an admixture of market movement, with the bulls gaining a significant stake as meme coin trading ramps up once more.
DOGE currently soars above the 20-day moving average (MA) support price of $0.2327, showing that the digital asset is on a bullish stretch. The 200-day MA price of $0.2750645 sees DOGE trading slightly below the longer-term indicator, which could be a sign of a possible downtrend in the coming days. It makes it seem like a possible downtrend is on the horizon for the long-term basis.
The relative strength index (RSI) figure of 61.24 is still considered underbought given the popularity of the joke currency. However, this is expected to change as the oscillator shows a spike in the trendline.
Meanwhile, the moving average convergence and divergence (MACD) indicator indicates a tussle between the buy and sell signal. Both trendlines are trading on par, but the green trendline (indicating buy signal) is currently above.
Investors should also be aware of the support zone. While the coin is currently trading above 25 cents, $0.20 and $0.16 are key support zones. Resistant zones on the other hand lie at $0.30 and $0.40.
Why Is Dogecoin Going Up ?
One of the reasons for the rise in popularity of Doge, despite the little value it provides to investors, is simply the social media appeal. Michael Kamerman, the CEO of broker Skilling says that the coin is a ‘parody currency’. He also goes on to say that investors get into the coin because of its status and popularity among social media and celebrities.
“The resurgence in attention to Dogecoin, which was originally launched as a parody currency, may seem attractive to investors due to its volatility but for the currency to ever have intrinsic value, scalability and security issues need to be addressed. The masses understand headlines, tweets, and endorsements and the masses will likely mature as crypto enthusiasts and begin to appreciate the movement for its more technical nuances.”
“However, the main driver behind Dogecoin’s popularity is its online communities, coupled with support from high-profile business magnates like Elon Musk.”
A reason for the recent success of the coin can also be attributed to a tweet from Elon Musk himself.
This particular tweet was posted by Elon Musk on twitter at the start of October. Since then, meme coins like Shiba INU and Floki took off, with the former gaining over 400% in just 2 weeks. Shiba INU also had an impact after the tweet, despite the little to no relation with Dogecoin, other than the fact that it’s a picture of a Shiba INU which also happens to be the symbol for the coin. This proves the comments made by Kamerman earlier, that billionaire celebs and social media can have a direct impact on this coin in particular.
Can Doge Reach $1?
The coin has its fair share of naysayers and supporters. Cryptonewsz believes that the coin will rise. The website says that the Dogecoin price is expected to trade with ‘bullish momentum’ and could even reach as high as $0.90 by the end of next year. The belief is for the coin to cross the $1 barrier in 2023.
Others may not be as bullish on the coin. Gavin Smith, the CEO of cryptocurrency consortium, Panaroxa, has the following to say on the meme coin. ‘As for Doge, it’s had a hard time since the hype earlier this year, still down over 50 percent. While there are enthusiasts for this token, it should be considered a highly speculative end of what is already a volatile asset class, so only invest in Doge what you can afford to lose’.The meme coin is currently trading at around $0.25. The opposing viewpoints are a clear indication that the crypto market is highly volatile. So don’t invest what you cannot afford to lose.