DOGECOIN Prediction for 2021: Is It Worth to Invest, Will It Hits $1 & Values Forecast?
|Dogecoin's price prediction for 2021. Photo: TokenMantra|
What is Dogecoin?
Dogecoin was launched in 2013 as a joke by software engineers Billy Markus from IBM and Jackson Palmer from Adobe, using a popular dog meme to parody the proliferation of cryptocurrency altcoins being touted as alternatives to Bitcoin. The co-founders are no longer directly involved in the DOGE cryptocurrency.
The Dogecoin protocol is based on the now-defunct Luckycoin, which was a fork, or spinoff, from Litecoin (LTC). As the supply of Dogecoin is not capped, there are more than 128 billion coins in circulation and the low price has made the currency popular in social media communities for small transactions. The Dogecoin price on launch in 2013 was $0.000232, so the rise to around $0.05 represents a 21,000% increase.
Its popularity on social media makes Dogecoin prone to wild price swings, with various attempts by users on TikTok and Reddit to collectively drive up the price causing the market to spike.
Dogecoin’s price tends to be gripped by dizzying highs and crashing lows. A day after the first spike in January 2021, DOGE crashed as low as $0.0228 – wiping more than two-thirds off its value. Investors who bought in will have ended up nursing some nasty losses. The most sensible Dogecoin price prediction suggests that we’ll see a similar pattern as a result of the February 2021 spike… with prices crashing back down to Earth. (Back at the start of 2021, Dogecoin’s price was struggling to break above $0.01.)
Will Dogecoin ever hit $1?
Despite the enviable gains DOGE has made in 2021, many experts are quick to point out the crypto remains worth very little. To put this into perspective, the best-performing digital assets are worth far more, with bitcoin (BTC) valued at $47,578 (£34,452), Ethereum (ETH) worth $1,792.67 (£1,297), and ripple (XRP) trading at $0.52 (£0.38) during the same period. The dogecoin price was effectively flatlining since the Shiba Inu meme-based cryptocurrency was created in 2013.
However, this all changed roughly one month ago, when retail traders frustrated by GameStop restrictions switched to cryptocurrencies.
Dogecoin's subsequent rise – by more than 600% since the beginning of February – has been fuelled by celebrities on Twitter. Lead among them is SpaceX and Tesla head Elon Musk, who has become the de facto head cheerleader for dogecoin. But such apparent support should perhaps not be taken on face value alone.
Elon Musk told chat app Clubhouse last week: "Occasionally I make jokes about dogecoin, but they are really meant to be jokes.”
Kadan Stadelmann, CTO of open-source blockchain provider Komodo, expressed concern about amateurs investing their money in markets they may not fully understand on the back of hype. He told Express.co.uk: “People who are new to crypto should be cautious of celebrity endorsements.
“Although Elon Musk, Snoop Dogg, and other celebrities have shown support for Dogecoin, DOGE climbing to $1 is unrealistic. Yes, DOGE could continue its climb but oftentimes the allure will fade away for celebrities and retail investors end up holding the bag at the end."
Red, an anonymous moderator of Harvest Finance, an automatic yield farming protocol assisting traders, said it is dangerous to not conduct research before investing in volatile crypto markets.
Is Dogecoin a good investment?
Well, it’s highly likely that Dogecoin’s price might have already hit a high point for this year. All of this depends on whether or not celebrities keep tweeting about it. One video on the platform said:
“Dogecoin is practically worthless. There are 800 million TikTok users. Invest just $25. Once the stock hits $1, you’ll have $10,000. Tell everyone you know.”
Such Dogecoin predictions may seem rather harmless at first, but it’s worth noting that this could be likened to pump and dump behavior. At the time of this challenge, DOGE would have also had to surge by 43,478% to hit this milestone, Currency cites.
So… has Musk made any Dogecoin price predictions? Why is he so passionate about this altcoin? Well, it might not be worth reading all that much into the billionaire’s tweets. During a discussion on the Clubhouse app, he said: “Occasionally I make jokes about Dogecoin, but they are really just meant to be jokes.”
|Photo: Daily Mail|
All of this raises concern that, as 2021 continues, Musk could end up causing prices to fall dramatically if he decides to tweet something negative about DOGE.
Overall, this is a tale of buyer beware. Although DOGE may seem fun – with dizzying surges that seem to be a license to print money – we’ve seen that prices can go down just as quickly as they go up.
What do Dogecoin predictions indicate about the direction of the price from here?
According to an online forecasting website Coinpedia, DOGE continued to trade at $0.007 during the start of 2021. It has broken its previous price records of 0.07 by hitting an All-Time-High. It might compete with other peer cryptocurrencies by 2021. It might even go up in the ranking. Dogecoin might trade between $2 and $4 throughout the year and may touch $5.2 by the end of 2021.
Its long-term forecast indicates the price could reach $0.0417 at the end of 2022, $0.0441 at the end of 2023, and $0.05096 in January 2026.
Cryptocurrency aggregator Coinswitch predicts that DOGE could move up by more than $0.005 in the coming month or two, noting that it has been adopted as a means of payment by online stores such as eGifter, AllGamer.net, and others. Taking a longer-term view, by 2025 Coinswitch expects Dogecoin to range between a low of $0.0281 and a high of $0.0450, reported Capital.
The Dogecoin forecast from digitalcoinprice.com is more bullish, predicting the price will average $0.073692 in March and reach $0.081293 by the end of 2021.
Over the longer term, the forecast puts the price at an average of $0.152755 in 2025 and $0.238451 in 2028.
Cryptocurrency markets are prone to rapid, sharp price changes, so if you decide to open a position in Dogecoin, you should be prepared for the high volatility in the price along the way even if the long-term outlook is bullish.
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