Will Dogecoin price ever go up? What a good question. We have seen people asking this everywhere on the internet. The massive price expansion experienced by Dogecoin (DOGE) in 2021 pushed many investors to buy the virtual currency close to its record high.
Nowadays, all these investors are asking the same question: will Dogecoin ever go up again? This guide aims at giving valuable information about Dogecoin price and how it could evolve in the future. In order to do so, we will go through the basics of Dogecoin, how this virtual currency behaved over the last years, and whether Dogecoin price would move higher.
What is Dogecoin?
Dogecoin (DOGE) is one of the oldest virtual currencies in the market. Launched in 2013, this virtual currency rapidly became one of the most popular in the world. The main characteristic of this virtual currency is its logo. It is represented by a Shiba Inu dog.
The Shiba Inu represents an internet meme that was very popular back in 2013. Of course, the meme is nowadays associated with Dogecoin and its community. The founders of the virtual currency, Billy Markus and Jackson Palmer worked on it as a hard fork of the Litecoin (LTC) digital asset.
Dogecoin has always been considered a meme cryptocurrency. Not only for the way in which it was created (with the Shiba Inu logo) but because the community literally knows it is just a meme without major functionalities. While Bitcoin (BTC) and Ethereum (ETH) want to change many things in the financial market, Dogecoin is just a simple meme cryptocurrency.
This meme feature has a strong impact on Dogecoin price. Indeed, Dogecoin price chart shows that every some month there is a massive price spike in BTC and USD terms. These price spikes are usually promoted by the Dogecoin community.
Despite being a Dogecoin digital asset, Flare Networks has integrated Dogecoin into its blockchain network. This enables the virtual currency to be used with EVM-based smart contracts. Nevertheless, Dogecoin remains a meme digital asset embraced by the whole crypto community.
Disclaimer: the information shared in this article should not be considered investment advice. This is just for educational purposes only. UseTheBitcoin and its writers are not responsible for any decision you make following this guide. Never invest more than what you are able to lose.
Dogecoin Price Performance
As we mentioned before, Dogecoin has a very predictable price performance. Over the last years, we have seen how the price of Dogecoin experienced sudden spikes. These price spikes are related to the Dogecoin and crypto communities purchasing this virtual currency.
If you are wondering: will dogecoin ever go up? then we need to understand how this virtual currency behaved in the last years. Although we cannot do a Dogecoin price prediction, we can suppose Dogecoin price could behave as it did in the past many times. However, we also need to take into consideration that past price performance does not tell us anything about what could happen in the future.
The Dogecoin community is very strong and does not care about Dogecoin price. They indeed don’t ask: will dogecoin ever go up? They just buy the coin, no matter if high or low. Additionally, they push for the narrative to attract a larger number of users and investors.
We need to take into account that the cryptocurrency market is a very volatile place. Indeed, we can see a coin such as Dogecoin move by over 900% in just days. This is quite common in the space and many digital currencies experienced this type of moves in the past.
Dogecoin Stock Price
Another thing that is worth pointing out is related to its financial category. Dogecoin is not a stock. It is wrong to think of Dogecoin as a stock with the DOGE ticker. Dogecoin is a digital asset that belongs to the cryptocurrency market.
If you want to trade Dogecoin you should use a virtual currency exchange. These are platforms that offer users a trading engine to buy and sell virtual currencies. This is similar to what a broker does in the forex market.
As a stock trader, you should think of a cryptocurrency exchange as the broker you use to handle your investments. The main difference between cryptocurrencies such as Dogecoin and stocks is the availability it has. The cryptocurrency market is open 24 hours a day every single day of the week.
If “will Dogecoin ever go up” is the question you now have in your mind right now, you should not look at the stock market but you should pay attention to the crypto market. If BTC moves higher and the entire market is registering more activity, then you should have a look at DOGE.
Dogecoin Highest Price
Dogecoin reached its highest price in USD terms in early February when the digital currency surpassed for a brief period of time $0.08. In BTC terms, it reached the same price as in February 2014.
Measuring Dogecoin price USD value we see that it moved from below $0.01 ($0.0077 to be precise) at the end of January to above $0.08 a week later. This represents a price increase of 938%.
This is the main reason why people ask: will dogecoin ever go up? Because many investors bought when the virtual currency was close to its all-time high. But there is no clear answer to whether the cryptocurrency Dogecoin price would move higher.
It is worth taking into consideration that in the past, Initial Coin Offerings (ICOs) and other tokens massively spiked and never reached the value they once had. However, DOGE has shown to be a different case considering there is a noticeable pattern in how this virtual currency is traded.
Will Dogecoin Price Ever Go Up?
This is the main question of this article: Will Dogecoin Ever Go Up? Before we continue, we need to know that everything can happen. We are not able to tell how the future would evolve and whether DOGE will break new highs.
There are many things that we need to analyze and look for to understand what could happen to Dogecoin. According to Emili Parker, there is a thin line between absurdity and seriousness for Dogecoin. Moreover, she explains that collective belief can trump “fundamentals.”
When we talk about fundamental analysis of the cryptocurrency market, we take into consideration different metrics that show us whether an asset is undervalued or overvalued. For DOGE, the signals showing and overvalued price appeared when Dogecoin price surpassed $0.08.
But DOGE lacks its own miners (most DOGE miners are Litecoin miners that do merge mining to earn larger rewards). Additionally, the last major software release for the Dogecoin project was two years ago. This shows that developers are moving to other digital assets.
Despite all these reasons that look negative to fundamental analysts, Dogecoin skyrocketed. It happened due to emotions and also sentiments. When the price of an asset moves higher, new users and investors enter the market believing the price would move to unreasonable levels.
Once the top is reached, early buyers sell their coins and new investors attracted by the high prices and positive sentiment get trapped asking the question: will Dogecoin ever go up again?
Technical and Fundamental Aspects of Dogecoin Price
Fundamental and technical analysis are two important aspects of understanding price dynamics. Dogecoin is a digital asset that, as we have mentioned, follows certain patterns over time. These patterns are seen in the charts. Thus, technical traders could use them to trade this digital asset.
Following technical analysis, we probably have an answer to the question “will Dogecoin ever go up?.” The answer is simple, if the pattern repeats itself, then we could see Dogecoin price moving higher.
The move higher is not expected to be immediate, but it can indeed take from months to years to happen again. Even if digital assets continue growing in the near future, we might have already seen the top (or we could have been close to the top) for Dogecoin.
In terms of fundamentals, we see that there is a strong correlation between dogecoin price spikes and market conditions that affect the valuation of the digital currency. For example, these price spikes happen when there is a strong push from the Dogecoin meme community to adopt the digital asset.
Surprisingly, these price spikes happened without good network fundamentals such as the number of transactions or hash-power.
The last and most recent price spike happened because Elon Musk and even Mia Khalifa embraced the pump started by the WallStreetBets movement. The WallStreetBets subreddit community purchased heavily shorted stocks such as GMO or Blockbuster. But then they followed the trend with DOGE and smaller digital assets.
One thing is clear. This virtual currency is not to buy for the long term. It can be used as a short-term investment but not as a long-term strategy. There are other virtual currencies that investors use to diversify their portfolios. Dogecoin is not one of them. Despite this, Dogecoin price has worked as a great short term investment for early pump buyers.
Sentiments and Emotions
To answer the question “Will Dogecoin Ever Go Up?” we need to take into consideration sentiments and emotions. They play a very important role, not only in the cryptocurrency market but also int traditional markets.
We know the theory that says “buy low, sell high,” but emotions push traders to buy when the price is high and sell when the price is low. Fear and greed could change and challenge what we would expect from rational actors.
Dogecoin price has shown over the last years that its price is driven by speculation. The DOGE community has been involved in most of the price pumps experienced by this digital asset since it was created.
This could continue in the future. It is possible to think of a new massive price increase generated by greed and the entire crypto and meme community buying Dogecoin (DOGE) just for fun or to make some profits. Long-term holders appear after these massive, “fun” and meme-driven spikes. However, they do not provide any value to the entire crypto ecosystem.
There are no long-term price drivers for Dogecoin. There are no projects coming on top of DOGE and there might not be. Investors buy DOGE just to make a fast profit pushed by sentiments. This could not be the best strategy to follow by long-term investors.
If Dogecoin moves downwards, it does not mean that its price goes to zero and it dies. Although it can happen (as it already happened to thousands of coins), we might see a revival of the digital asset for brief periods of time.
Elon Musk and WallStreetBets Involvement
Elon Musk and the WallStreetBets community have had a strong impact on the price of Dogecoin. Elon Musk has many times embraced Dogecoin and has even changed his own profile description on Twitter to “Dogecoin CEO.”
This has generated strong waves of buyers of the DOGE digital asset. But as we have already mentioned, DOGE holders buy and sell the virtual currency to generate profit, not for a long-term investment strategy.
Specifically, WallStreetBets pushed for Dogecoin adoption in January and February. As they pumped stocks such as GameStop or Blockbuster, they also wanted to have some influence in the crypto market.
Dogecoin is a digital asset with relatively low volume compared to Bitcoin, Ethereum or Litecoin. This is why the community knew they could pump Dogecoin price without major issues. The pump was then embraced by Elon Musk and most of the Dogecoin community in the market. Indeed, the entire crypto Twitter and Reddit users started talking about Dogecoin and how it surpassed $0.08.
This brings us to the original question of this article: “will dogecoin ever go up?” It is possible for Dogecoin price to move up during certain periods of time, but only for a brief moment. Short-term traders could make profits with these pumps but long-term holders might suffer buying at the top and not being able to leave the market for months or even years.