- Dogecoin (DOGE), originally created as a joke, is currently down over 78% from its all-time-high in May 2021.
- DOGE belongs to a controversial class of crypto assets called “memecoins” (also called sh*tcoins) that swing massively in price in response to related news, hype and the tweets of Elon Musk.
- Due to a strange mix of speculation-based movements in Dogecoin’s price contrasted with Elon Musk’s obsession with the token, analysts and experts are divided on DOGE’s long-term price prediction.
As of Thursday April 14th, DOGE is trading for $0.14 USD ($0.19 AUD). DOGE is down 81% from its all-time high of $0.73 USD ($0.96 AUD) on May 8, 2021. With a market cap of $21.5 billion USD ($28.4 billion AUD) DOGE is ranked as the 12th largest cryptocurrency at the time of writing.
DOGE and similar meme coins like SHIB & FLOKI have proven to be major head-scratchers for traditional investors. It’s super easy to poke fun at meme coins for being more like gambling than investing, but DOGE has grown a staggering 185,037% since its creation in 2013, leaving tens of thousands of Dogecoin investors laughing their way to the bank.
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What is Dogecoin?
Dogecoin (DOGE) is a cryptocurrency based on the popular “doge” meme that did the rounds across the internet back in 2013. The coin features a Shibu Inu from a well-known meme-template on its logo.
The digital currency was originally co-created by Billy Markus and Jackson Palmer back in 2013. The creators initially created it as a joke that would simultaneously sharpen up their coding skills and never imagined that it would be anything more than a light-hearted crypto gag. That was up until Tesla CEO Elon Musk posted several tweets across Twitter, proclaiming Dogecoin as his favourite coin, sending the price skyrocketing.
Does Dogecoin (DOGE) Have Any Real Value?
Ultimately DOGE has very little underlying value, but it is worth noting that Tesla now accepts it as a form of payment for merchandise on its website. This real-world use case does set it apart ever so slightly from other memecoins like SHIB and FLOKI which only grow in value because of wild speculation, hype, FOMO and the erratic tweets of Musk.
It is so important to remember that while some lucky investors have achieved genuinely legendary returns from DOGE and other meme coins, the chances of making any serious gains on Dogecoin moving forward are extremely low.
If investors are willing to gamble on the chance that Elon will post another photo of his puppy, or that a positive rumour about DOGE goes viral, then there may well be some ROI in it for them. But that’s not exactly what anyone would call a sound investment strategy.
Dogecoin (DOGE) Price Prediction 2022
If we use technical analysis to predict DOGE’s performance for the beginning of this year, the general outlook is completely uncertain. DOGE’s total trading volume remains low, and while the RSI continues to fall (which means that Dogecoin is becoming more undervalued) it seems unlikely that buyers will start buying up large amounts of Dogecoin until the overall crypto market sentiment changes.
According to Jonathan Morgan at FXStreet, Dogecoin looks set to grow in value in the short-term, with Morgan predicting that DOGE may yet be primed for a short-term rally of over 50% from its current price to $0.25 USD ($0.32 AUD). However, if the necessary conditions aren’t met DOGE could fall even further to $0.14 USD ($0.18 AUD).
Dogecoin (DOGE) Price Prediction 2023
Owing to a lack of any legitimate valuation methodology, it’s almost impossible to make any accurate long-term predictions about Dogecoin or any of the other speculation-based meme coins.
The automated technical analysis from Wallet Investor is undeniably bullish and forecasts that DOGE can reach $0.28 USD ($0.37 AUD) by the end of this year, a gain of 65% over the next 8 months.
The analysis from DigitalCoin is less optimistic than other prediction analytics and predicts that the price of DOGE will reach a maximum price of $0.23 USD ($0.30 AUD) by the end of this year, gaining a respectable 44% from its current price.
It’s worth noting when using automated technical analysis services such as Wallet Investor or DigitalCoin, the algorithms used to make predictions are basing all predictions off past performance data. When looking at meme-coins in particular, past performance does not guarantee future results.
Dogecoin (DOGE) Price Prediction Conclusion
- DOGE remains a very risky digital asset that has little underlying value. Its value is based almost entirely on speculation.
- While the price of DOGE may rise in the future with new developments in crypto, it is one of the riskier options on the crypto market.
- Unless you are a technical trader, who understands technical analysis, how to read charts and you can accurately interpret short-term price signals, all investing in Dogecoin and other meme coins should be treated like gambling.