Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

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

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Hungary Ranked Among the World’s Safest Travel Destinations for 2025
G7 Leaders Fail to Reach Consensus on Key Global Issues
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Man Convicted of Fraud After Booking Over 120 Free Flights Posing as Flight Attendant
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Beata Thunberg Rebrands as Beata Ernman Amidst Sister's Activism Controversy
Hungarian Parliament Approves Citizenship Suspension Law
Prime Minister Orbán Criticizes EU's Ukraine Accession Plans
Hungarian Delicacies Introduced to Japanese Market
Hungary's Industrial Output Rises Amid Battery Sector Slump
President Sulyok Celebrates 15 Years of Hungarian Unity Efforts
Hungary's Szeleczki Shines at World Judo Championships
Visegrád Construction Trends Diverge as Hungary Lags
Hungary Hosts National Quantum Technology Workshop
Hungarian Animation Featured at Annecy Festival
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
UK and EU Reach New Economic Agreement
Coinbase CEO Warns Bitcoin Could Supplant US Dollar Amid Mounting National Debt
Trump to Iran: Make a Deal — Sign or Die
Operation "Like a Lion": Israel Strikes Iran in Unprecedented Offensive
Israel Launches 'Operation Rising Lion' Targeting Iranian Nuclear and Military Sites
UK and EU Reach Agreement on Gibraltar's Schengen Integration
Israeli Finance Minister Imposes Banking Penalties on Palestinians
U.S. Inflation Rises to 2.4% in May Amid Trade Tensions
Trump's Policies Prompt Decline in Chinese Student Enrollment in U.S.
Global Oceans Near Record Temperatures as CO₂ Levels Climb
Trump Announces U.S.-China Trade Deal Covering Rare Earths
Smuggled U.S. Fuel Funds Mexican Cartels Amid Crackdown
Austrian School Shooting Leaves Nine Dead in Graz
Bezos's Lavish Venice Wedding Sparks Local Protests
Europe Prepares for Historic Lunar Rover Landing
Italian Parents Seek Therapy Amid Lengthy School Holidays
British Fishing Vessel Seized by France Fined €30,000
Dutch Government Collapses Amid Migration Policy Dispute
UK Commits to 3.5% GDP Defence Spending Under NATO Pressure
Germany Moves to Expedite Migrant Deportations
US Urges UK to Raise Defence Spending to 5% of GDP
Israeli Forces Intercept Gaza-Bound Aid Vessel Carrying Greta Thunberg
IMF Warns of Severe Global Trade War Impacts on Emerging Markets
Low Turnout Jeopardizes Italy's Citizenship Reform Referendum
Transatlantic Interest Rate Divergence Widens as Trump Pressures Powell
EU Lawmaker Calls for Broader Exemptions in Supply Chain Legislation
France's Defense Spending Plans Threatened by High National Debt
European Small-Cap Stocks Outperform U.S. Rivals Amid Growth Revival
Switzerland Proposes $26 Billion Capital Increase for UBS
×