Elon Musk’s favourite token Dogecoin (DOGE) just pumped like crazy — is it time for the canine came back down to earth? Uncover everything you need to know about DOGE in this comprehensive Dogecoin price prediction.
- Dogecoin (DOGE) was originally created as a joke by Australian software developer Jackson Palmer, but due to its ties to eccentric billionaire Elon Musk, the token has rapidly become a staple asset in crypto markets.
- While DOGE has recently gone on a face-melting rally — surging more than 100% in the past seven days — the token is still down 77% from its all time high in November last year.
- DOGE belongs to a controversial class of crypto assets called “memecoins” — also called sh*tcoins — that swing massively in price in response to topical headlines, 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 the experts remain divided on DOGE’s long-term price prediction.
As of Wednesday November 2nd, DOGE is trading for US$0.14 (AU$0.21). DOGE is down 77% from its all-time high of US$0.73 (AU$0.96) on May 8, 2021. With a market cap of US$18 billion (AU$29.4 billion) DOGE is ranked as the 8th 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 180,000% since its inception in 2013, leaving tens of thousands of Dogecoin investors laughing their way to the bank.
In this Dogecoin price prediction guide…
What is Dogecoin?
Dogecoin (DOGE) is a cryptocurrency based on the popular “doge” meme that did the rounds on the social media 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. It was originally developed as a gag that would sharpen up their coding skills, the pair never imagined that it would be anything more than some light-hearted blockchain parody. This all changed until Tesla CEO Elon Musk posted several tweets across Twitter, proclaiming Dogecoin as his favourite cryptocurrency, 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’s crucial 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 aren’t exactly stacked in your favour.
If investors are willing to gamble on the chance that Elon will post another photo of his puppy, or that a positive rumor 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 relatively shaky. From a technical standpoint, DOGE’s total trading volume is extremely, and while the RSI continues to increase (which means that Dogecoin is becoming more overvalued) so, it seems likely that buyers may quickly turn into sellers if external market conditions begin to sour.
Now, with that in mind, much of DOGE’s price action comes solely from Twitter’s new ‘Complaint Hotline Operator’, so if he decides to announce that DOGE can be used for payments on Twitter, it’s likely that the price of the token will continue surging upwards.
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 yet another for short-term rally of over 40% from its current price to US$0.20 (AU$0.32). However, if the necessary market conditions aren’t met DOGE could fall even back to a support level at US$0.10 (AU$0.18).
Dogecoin (DOGE) Price Prediction 2023
Owing to a lack of any legitimate valuation methods, it’s almost impossible to make any accurate long-term predictions about Dogecoin or any of the other speculation-based meme coins.
Just in case you were getting a little too bullish, the automated forecast from Wallet Investor is firmly pointed towards some significant losses in the future and predicts that DOGE will gradually decline to US$0.017 (AU$0.026), a brutal 99% decrease from its current price by this time next year.
The analysis from DigitalCoin is far more optimistic than other prediction analysis and suggests that the price of DOGE could reasonably reach a maximum price of US$0.24 (AU$0.37) by this time next year, gaining a respectable 78% 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 base all predictions on 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 in the way of underlying value. Its value is based largely on the speculation that Musk might eventually do something with the token.
- While the price of DOGE may rise in the future as Elon Musk continues to expand its use for payments across his many companies, it remains one of the riskier options on the crypto market.
- Unless you are a technical trader, who understands how to read charts and you can accurately interpret short-term price signals, investing in Dogecoin and other meme coins should be treated as a tiny step up from gambling.