Dogecoin, a meme-based cryptocurrency, dropped on Tuesday after reaching an all-time high in a crazy session that saw fans of the token, which was once ignored as a joke, use hashtags to fuel a rally before it fizzled out.
People are starting to wonder, “Will DOGE price rise again?” as they consider their next move. There’s no justification to expect a definitive response from an asset that is based on celebrity tweets.
Top Catalyst That Can Drive Dogecoin Prices Again
Newegg, an online electronics retailer, revealed late Monday that consumers would be able to pay for items using Dogecoin. Also, Slim Jim and Snickers have recently shared their own Doge and Dogecoin memes on Twitter. Dogecoin traders, on the other hand, are more concerned about sending the cryptocurrency “to the moon.
And ultimately if more people use Dogecoin, the currency has a better chance of surviving rather than disappearing.
The Meme token has proven to be incredibly durable over time. Since 2014, declines of 15% or more have been accompanied by an average return of 11.3% over the following month. In other words, anyone who bought the dip in the past would have profited.
The plan, on the other hand, isn’t for the faint of heart. Dogecoin lost another 43% of its value after losing 17% in a single day in September 2017.
Despite this, momentum is still one of the best indicators of cryptocurrency success. In comparison, Dogecoin’s 25% loss on Tuesday seems to be a short-term trading opportunity rather than a total turn of events.
Doge Fans and their support
The adoption of bitcoin and other cryptocurrencies by businesses and mainstream investors has boosted Dogecoin’s popularity this year.
The altcoin has tapped into that force. Memes continue to go viral on Twitter, garnering thousands of “likes” and persuading newcomers to give it a try. If Dogecoin’s popularity continues to rise, the $38 billion gain since January may be just the beginning.
Fans also tried to boost its price by celebrating DogeDay on 4/20. It shows that people are still Doge friendly and are still trying to get Doge to the moon.
Coming to the drawbacks of dogecoin until now only four contributors have made any changes to Dogecoin in 2021. A significant reason is that DogeCoin developers lack money. Cryptocurrency developers work for free, unlike Cardano and other currencies.
Also as Dogecoin has risen, however, its upside has decreased. Increasing another 65x would make the coin worth $2.6 trillion. No current investor will repeat the winnings of early DOGE investors.Having said that there are alternative meme coins in the market that have quickly gained traction. SafeMoon, a coin launched less than a month ago, dethroned Doge coin.
Dogecoin fans have long focused on memes over development. But those looking for their first taste of cryptocurrency could do well to buy a couple of hundred dollars. Dogecoin might yet reach $1.