Dogecoin’s price rose during the first months of 2021, in tandem with the entire cryptocurrency market. Since Bitcoin hit its highs, the market followed suit.
What is Dogecoin?
Dogecoin is one of the oldest cryptocurrencies in the market. It started as a joke, and the developer team even abandoned it a few years ago. However, since 2020, Elon Musk started showing an interest in it, and this created excitement around Dogecoin.
Dogecoin’s price rose dramatically during the first months of 2021. After gains of over 12,000%, the crypto seemed to have hit some resistance in the $0.50 to $0.60 price level. This was in tandem with the entire cryptocurrency market, which appeared to have plateaued after the recent rally. Since Bitcoin hit its highs of $64k and entered a range between $50k and $60k, the whole market followed suit. The crypto market correlation was evident in subsequent Dogecoin prices.
Dogecoin Technical Analysis May 2021
From its price action, it is in a correction, just like the rest of the market. This is an indication that bears are quite strong. Based on price action, it is anticipated that Dogecoin will rebound as investors are expected to get back into the market. The short-term moving averages are still gapping up. It is an indicator that the price is overall trending up faster than the historical average despite the current correction.
Dogecoin Daily Price Chart (Source: Ftx.com)
Looking further ahead, Dogecoin charts point to potential growth, as evidenced by its weekly charts. The Dogecoin price chart shows an upward trajectory with consistent gains for six months. The upside momentum is supported in its price action this month. Earlier in the month, bears tried to control the price and pushed Dogecoin from a high of over $0.70 to lows of $0.39. However, bulls quickly regained control and pushed the price back to around $0.50. Dogecoin has been trading at this level for over a week. Weekly buying volumes are on the rise, too, an indicator of strong bullish momentum. If Dogecoin can end the month of May 2021 above the $0.50 price level, bulls will be well-positioned to push it even higher in the second half of the year. If it moves above the $0.71 price level at the end of May, there would be a good chance that it would test new highs later in the year. $1 would be a good target.
Dogecoin Weekly Price Chart (Source: Ftx.com)
There are several fundamentals factors that give potential for Dogecoin to gain beyond its current price.
The Elon Musk Factor
Elon Musk has had a big impact on Dogecoin’s price action. He is the sole reason why Dogecoin is where it is today. Dogecoin has experienced significant growth from being a joke coin into one of the most valuable cryptocurrencies and can attribute most of its success to Elon’s tweets and large following, which propelled it to its current success. Musk, who still shows interest in Doge, recently stated that Dogecoin would be used to fund SpaceX’s trip to the moon next year. However, he later called Dogecoin a “hustle” on primetime television, and nobody was sure if he was joking or not. In any case, whether positive or negative, it is likely that the buzz of publicity which has already been created around Dogecoin will continue to keep interest high and may well produce a strong recovery in the coin’s price. This will be one of the factors that might not just see Dogecoin push past its recent highs but possibly test new highs above $1 as well.
The Developer Team is Back
Dogecoin started as a joke, and even the founding team considered it so. One of the founding members of Dogecoin has consistently termed it as a joke. However, this is no longer the case. Since Dogecoin’s price started pumping, the developer team is back. This has several implications for Dogecoin.
The first one is that Dogecoin’s technical issues now have someone taking care of them. This is a near-guarantee of technical stability, and by extension, its price momentum. Secondly, investors are likely to start taking Dogecoin seriously. This is a big deal, as it is likely to play into its demand dynamics going forward. This is already evident in its price action so far. Recently, the markets have become a little too volatile, and many cryptos have been corrected by a significant amount. Dogecoin is one of those that have held their value all through, an indicator that the demand is consistently strong.
Dogecoin’s Price Remains Within Reach
After the crypto rally seen in the late 2010s and in 2020, several coveted cryptocurrencies have become too expensive for many. For instance, Bitcoin and Ethereum are too costly for most people to afford in single units at this point.
As such, people are turning to low-cost coins, which they can accumulate in large amounts. Dogecoin is one of those that perfectly fit the bill. Not only is it nominally cheap, but it also has lots of growth potential, all thanks to Elon Musk. The rush to accumulate is quite evident in Dogecoin’s price action in recent weeks, despite Dogecoin being a highly inflationary cryptocurrency.
How to Buy Dogecoin
Dogecoin is available at eToro and at almost all major cryptocurrency exchanges. If you want to get involved in Dogecoin, you can use these channels to buy or even short Dogecoin. Dogecoin is also available on leveraged trading platforms such as Bitmex and Ftx.com.
How much will Dogecoin cost in 2022?
If it retains its momentum seen during the first months of 2021, Dogecoin could hit $2 in 2022.
Can Dogecoin reach $10?
It is possible, especially if SpaceX uses it to fund its moon mission.
How much will Dogecoin be worth in 5 years?
If the protocol upgrades Elon Musk has proposed are implemented, Dogecoin could trade at $10 in 5 years.
Can Dogecoin reach $100?
Dogecoin is unlikely to rise as high as $100 within the next few years. However, if Dogecoin increases in value by as much as Bitcoin did from 2017 to 2020, it would reach $100.