Could the Dogecoin price hit $1? Analysts took a critical look at the meme coin's performance and cast their prediction whether it could be a suitable investment or not.
Many are probably familiar with Dogecoin. However, as a quick overview of the crypto coin for those who don't know, Dogecoin was founded by software engineers Jackson Palmer and Billy Markus. It was marketed as a fun and joke-like altcoin compared to the more established Bitcoin.
In 2020, it had an average trade value of $0.0021, as seen on CoinDesk charts. However, a series of events caused an uptick in the market, which resulted in big profits to Dogecoin investors.
- Elon Musk sold NFT for Dogecoins in March. The coin rose to a $0.06 market value.
- Musk proclaimed himself as "The Dogefather." He teased his event for Saturday Night Live's (SNL) featuring Dogecoin. The coin broke past a $0.5 market value.
- Since the crypto coin quickly spiked in market value, analysts got convinced it could break through $1 value.
The whole world got familiar with the iconic Shiba Inu meme coin back in May, when it exploded with popularity and value, taking enthusiasts and investors by surprise. Since then, many have kept their eye on Dogecoin, wary for the next big surge where they could get quick profits.
Is Dogecoin a Bad Investment? Will It See a Massive Surge?
To emphasize, Dogecoin started as a joke. However, over these last few months, it has established itself as a feasible source of income, like most cryptocurrencies. Investors see a lot of potential in the meme coin because it rose to over 8,000 percent in value this year alone.
However, like most cryptocurrencies, trading Dogecoin is a risky investment. These sudden growth spikes could easily see a shocking market crash.
Cryptocurrency is highly volatile, especially newer coins like Dogecoin. It is important to note that at the time of writing, Dogecoin is trading at $0.32--up by 0.77 percent in the last 24-hour period. Even as it stands on a path of recovery, the meme coin only has half its value compared to March.
To highlight, Dogecoin is one of the biggest gambles in the cryptocurrency market. It has the biggest growth so far, but it also has the biggest crash potential. With that, analysts have checked carefully whether there is a chance for an increase or a decrease is looming.
Dogecoin Price Prediction 2021
It is critical to remember that it is impossible to predict the Dogecoin price. As indicated above, it is directly affected by events like regulatory crackdowns and comments by high-profile individuals. Investors could only hope that these rumors will work in their favor.
Sarah Coles, an analyst from Hargreaves Lansdown, told The Sun that "forecasting what's going to happen next to meme coins is like predicting what's likely to set off the next tantrum in a room full of toddlers... the price is driven by highly unpredictable sentiment."
Regardless, two crypto experts gave their price predictions for Dogecoin. Digital Coin Price predicted that Dogecoin would hit $0.641 by the end of the year.
On the other hand, Wallet Investor said that the crypto coin would hit $0.585 by 2022.
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