Here’s another Dogecoin (DOGE) price prediction article. It’s the article no one asked for but secretly inside, we all wanted. Whether you are public about your DOGE investment or not, the entire crypto industry is certainly fascinated with this meme coin and the many others it has inspired. We can all laugh about it later but for now, let’s try to be serious and analyze this coin from a technical perspective. Does it have a future in your portfolio?
Sure, we could just throw out some crazy Dogecoin price prediction numbers like those people on Twitter. “$2 by 2022, $5 but 2022, and $1,000 by 2025!” they say. At YouHodler though, that’s not how we do things. Let’s approach this from a logical and fundamental perspective.
One of Dogecoin’s main benefits are its block times. They are very short and come with affordable fees. That means it’s quick and cheap to send Dogecoin anywhere in the world which is a great quality for money to have. That being said, the benefits mostly stop right there. Once we start digging into Dogecoin’s supply problem, we start to uncover a few weak spots.
One of the biggest problems of fiat currency is inflation. In turn, that’s one of the biggest selling points for Bitcoin (BTC). Over time, governments continue to print more and more fiat currency. A higher supply leads to a gradual decline in the value of this fiat currency which spells trouble all around. Bitcoin on the other hand has a limited supply, making it deflationary.
Back to Dogecoin. Dogecoin--once it reached its soft cap--experienced inflation of five billion Doge per aum. The logic behind this is that if a Doge holders realizes that it will not grow in value, then they have incentive to spend it--using it as money as opposed to Bitcoin holders who typically like to “HODL” forever. Again, as a currency, this is a great quality. Currency is meant to be spent. However, for an investment? That’s a different story.
We may sit here and laugh at the Dogecoin fans on the internet but they have something a lot of us don’t have and that’s a strong family. The number one factor that makes Dogecoin special is the Dogecoin community. Over the years, Dogecoin created one of the most loyal and passionate communities amongst altcoins. This likely started with its charitable roots.
Back in Dogecoin’s early days, the community used its meme powers for good, pumping Dogecoin price for charities and tipping. No one was in it to get rich. The tipping aspect is the most attractive aspect for institutional money as well.
Twitch was one of the first major platforms to incorporate Dogecoin tipping and others quickly followed suit. As essentially the face of crypto tipping, Dogecoin has helped garner a loyal and permanent community that doesn’t seem to be going away anytime soon. Add to this the support of one of the world’s wealthiest men--Elon Musk--and we get an extremely strong community. The benefits of this power could potentially surpass the fundamental weaknesses discussed earlier.
2021 was an exciting and crazy year for DOGE. Its volatile ups and downs whipped the whole crypto world into a frenzy. At the time of writing this article, DOGE price has cooled down dramatically. Does it have any room left for growth?
Looking at the weekly chart above, you can see Dogecoin had a huge few weeks in March and May only to follow the rest of the crypto market down in June. Some say this tied into Elon Musk’s tweets and appearances on Saturday Night Live. While that may have played a role, it was not entirely to blame.
In general, the altcoin market tends to follow the Bitcoin market. When Bitcoin goes down, the altcoins usually follow. Hence, if Bitcoin finishes the year strong with a bull run, it’s highly likely Dogecoin and the other alts will follow. That being said, always remember that price moves in waves, and volatility should always be accounted for.
We here at YouHodler are not in the business to make predictions. All we know is that Dogecoin will increase and decrease in the future. How much is anyone’s guess but if you believe in the future of Dogecoin and want to buy some, you are more than welcome to do so with us?
Simply check the Dogecoin price on our site and deposit crypto or fiat to buy Dogecoin.
As we stated before, Dogecoin--and all cryptocurrencies-- move in waves. This means you have the chance to capitalize on trades in both directions (up and down). YouHodler’s Multi HODL tool can help. Just choose Dogecoin from your wallet, pick which direction you think it’s going to go in, and then set a multiplier level to help you long or short the market.
You can open up multiple deals at the same time to help you take advantage of every market swing (e.g. shorting high and long low). Alternatively, you can keep most of your Dogecoin in a DOGE savings account where you earn passive income each week.
Dogecoin may be a meme coin but so far, it’s stood the test of time. If you want to buy Dogecoin, HODL it for interest payments and capitalize on its future growth with innovative trading solutions, head to YouHodler today.