In recent months, many cryptocurrencies have hit new lows, including Dogecoin. On a yearly basis, the project's price lost more than 70%, even falling as low as 5 cents. The price is now on the verge of doubling since the bottom. Can the Dogecoin price reach the 10 cent mark again soon?
Dogecoin is one of the most popular cryptocurrencies. The project was originally created as a parody of cryptocurrencies to poke fun at Bitcoin and the hype around it. The project has little to do with technological innovations. It is an open-source cryptocurrency used by users around the world. Since the structure is built on top of Litecoin, all updates will also be provided for Dogecoin.
The famous entrepreneur Elon Musk helped bring Dogecoin into the mainstream with his partly funny, but also controversial tweets. This development has helped the crypto market in general as it has made more people interested in the topic of crypto. But even this "hype" soon ended and the market became overbought and collapsed.
Why is Dogecoin such a risky investment?
Basically it's relatively simple, people usually invest their money in a project because they have high hopes for the technological advances and the general use case of the project. If these expectations are met as hoped, the project will grow organically and the native currency should appreciate in price.
However, since Dogecoin was only created as a joke and does not represent a technological innovation, one might ask the question why one should invest even a cent in this project.
The answer to that is as simple as it is problematic: hype.
The only reason why the Dogecoin price keeps rising is ultimately hype. Whether it's due to some Reddit memes, posts by Elon Musk on Twitter, or a PR stunt by a TikTok influencer, Dogecoin is rising solely because of media attention or the overall growth of the crypto market.
The emergence of Dogecoins and the hype
It all started when Dogecoin was introduced as a cute dog that served as the mascot for the cryptocurrency. Everyone liked the concept and made smaller purchases “just because of the memes”.
After Elon Musk started hyping cryptocurrencies and Doge in particular with his media standing and started tweeting about it frequently, prices started to skyrocket. Initially, the Doge course was around USD 0.05. Thanks to Elon, shortly thereafter the price surged to its all-time high of $0.70 and a whopping $89 billion market cap.
However, the cryptocurrency suffered from the general crypto market crash and Elon's lack of tweets about Doge. The price meanwhile fell back to $0.05 and it looked like it never rose.
After hitting the bottom price of $0.05, DOGE returned to its uptrend. In a previous article , we explained why Dogecoin was looking bullish. In the course of the currently positive market dynamics, the Dogecoin course rose again with the other cryptocurrencies.
Dogecoin fell out of the top 10 earlier this month but has bounced back over the past few days, having surged more than 8% in the past 24 hours. The market cap is currently $10.4 billion. The next competitor in the ranking is Polkadot with a market cap of $9.9 billion.
With the current market dynamics, it is very likely that the DOGE price will break the 10 cent mark. If we look at Figure 2 below, we can see how the price has started its uptrend since hitting the $0.05 low price. However, we should wait and see if DOGE breaks the $0.08 level to the upside to confirm the uptrend continuation.
On a rally, DOGE might soon correct lower towards $0.07. However, if the price breaks $0.08 again, the $0.1 price might be within reach. And when? We expect to see this price around mid-September, which would also coincide with the Ethereum merge. If everything goes smoothly, the entire crypto market should go up and so should DOGE.
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