Dogecoin is a Litecoin fork with a much higher inflation rate. However, this has not stopped it from becoming quite popular, with a market cap of over $8 billion. After its launch in 2013, it experienced little to no traction until it’s all-time high of $ 0.73 in May 2021. This surge was sudden, thanks to its vibrant community and the involvement of Elon Musk. Unfortunately, it was a short-lived spike and Dogecoin has assumed a downtrend since then and is now trading at $0.06122.
But, what does the future hold for DOGE, and is it likely to trade higher by the end of 2022? Keep reading to find out!
Current Dogecoin Price
Is Dogecoin Price Recovering From the Bear Market?
After hitting an all-time high in May 2021, Dogecoin entered a downtrend and the price has been consolidating since it traded below the $0.1 mark. This could be a sign that the bears are losing steam and that bulls are ready to take control of the market. Although the price is still far from it’s all-time high, a breakout could lead to a sharp rally in the near future. You can take advantage of this early by DCAing into DOGE or buying Dogecoin with Paypal as both are the simplest and most adopted ways to invest in crypto but ensure you manage your risk while investing.
Should You Buy Dogecoin Right Now?
DOGE still has potential but it’s best to wait for more confirmations before making a decision. It has lost over 90% of its value since it’s all-time high and is currently trading at $0.06122. This doesn’t come as a surprise since most cryptocurrencies, including Bitcoin, have been in a downtrend since the beginning of 2022. However, there are a few factors that could lead to a price increase in the near future. Here are 3 of them;
1) A Clear-cut Use Case
For a cryptocurrency to succeed, it needs to have a clear-cut use case. And Dogecoin has just that. It was originally created as a meme coin but has now evolved into much more. Dogecoin serves as a tipping currency on social media platforms like Reddit and Twitter. Users tip each other for providing quality content. This is similar to how people upvote content on Reddit. The only difference is that users are rewarded with Dogecoin instead of Karma points. Further, DOGE is currently being accepted as a means of payment by companies like Tesla, Twitch, and GameStop.
2) A Vibrant Community
The Dogecoin community is one of the most active in the crypto space and is constantly coming up with new and innovative ways to use the coin. From tipping content creators to funding charities, the community has done it all. This shows that there is a real-world utility for the coin and that people are willing to use it.
3) The Involvement of Elon Musk
Elon Musk, the founder of Tesla and SpaceX, has been a big supporter of Dogecoin. He has often tweeted about the coin and even called it “the people’s crypto.” As a result, DOGE has been listed on many exchanges and investors can buy Dogecoin with Paypal and other payment platforms. This has led to a lot of hype around the coin and has helped to increase its price.
Dogecoin Price Prediction for the End of 2022
Even though it has lost a significant amount of value since its all-time high, the future looks bright for DOGE. However, the bearish sentiment amongst crypto investors persists and it’s best to look out for more confirmations before making a decision. From a technical analysis perspective, DOGE is trading below the 100 EMA on the daily time frame, showing significant bearish pressure.
Look out for news updates regarding key events like Elon Musk’s Dogecoin suit as well as market breakouts from a technical analysis perspective. These can help you determine the market sentiment and invest at the right time.
DOGE has a lot of potentials but it’s still in its early days. The factors mentioned above show that the coin could trade higher in October and the end of 2022, despite its current bearish sentiment. So, keep an eye out for key events and market breakouts to confirm bullishness and make the most out of your investment.
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