Dogecoin, also known as Doge among users, is a crypto coin designed and launched by software engineers Billy Markus and Jackson Palmer in 2013. Initially, the asset was a way to make fun of the crypto establishment and the rampant speculation associated with it. However, Dogecoin ended up becoming genuinely important for the traders, earning the title of the first meme coin in the world. Despite its satirical nature and the fact that its price is much lower than that of standard crypto coins, many consider it a legitimate investment and have been adding it to their portfolios as a result.
An ever-growing number of traders have been looking into how to buy Dogecoin since its volatility and the severe price fluctuations make it quite challenging to deal with, especially if you’re a newcomer to the marketplace. As is always the case with crypto, you must become accustomed to the intricacies of the market and find a way to come up with a strategy that can help you achieve your financial goals. Dogecoin is no exception; in fact, it might be even more important to pay attention to the fluctuations in this environment and remain aware of all the changes occurring within the system.
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The beginnings
Dogecoin started out as a joke, being the creation of two software engineers who were looking to create a peer-to-peer digital asset that could reach more people than Bitcoin ever did. Within the first thirty days following Doge’s official launch on December 6th, it ended up having more than 1 million visitors. On December 19th, the price climbed 300% as a result of a process that had lasted approximately seventy-two hours. Billions of coins were traded at that point, with the shift occurring during a time when BTC and other cryptocurrencies were still struggling in the aftermath of China’s crypto ban, which forbade banks from investing in the crypto economy.
In January 2014, Dogecoin’s trading volume surpassed that of all other digital coins combined, albeit briefly. Its market cap level nonetheless remained much lower than that of Bitcoin, but Dogecoin resembles the king of crypto in terms of what it signifies for the larger marketplace. As altcoins appeared following BTC’s success and have taken it as the blueprint of their procedures, Doge has also spearheaded the development and evolution of the meme coin ecosystem. 2014 is also the year when Dogecoin moved from randomized to static rewards.
Between 2017 and 2018, Dogecoin reached a new milestone after its total market cap level climbed to $2 billion. In July 2020, the price spiked all of a sudden as a result of a trend on the social media platform TikTok, highlighting the importance of trends and hype in this environment. In 2021, by far one of the best years in the entire history of cryptocurrencies, Doge’s price skyrocketed over 800% in just twenty-four hours in January, surpassing the symbolic hurdle of $0.50 for the first time since its release.
528%
Historical data shows how Dogecoin’s price can change quite a lot seemingly overnight, but does the same apply nowadays? Most investors would agree that this is definitely still the case and that knowing how to make the most of these shifts is the only way to grow your portfolio. The sense of community is also vital for investors, and the moment there’s a significant change in the marketplace, everyone gets together to discuss and analyze it. The number of active addresses recently surged by 528% in the aftermath of the SEC acknowledging the 21Shares spot Doge ETF filing. This isn’t a surprise as price points typically grow the moment there’s official confirmation that a regulatory body has acknowledged a particular crypto token.
The number of addresses went from 74,640 to almost 470,000, indicating robust network activity and growing interest from investors. Being granted admission by the SEC provides investors with more certainty regarding their financial well-being and the future of their portfolios. These are the characteristics all traders are looking for, as stability means you can come up with a comprehensive plan that helps you grow. The purpose of this filing is to track Dogecoin’s price movements, a feature that aligns with the aims of Grayscale and Bitwise. This is good news for most investors as they believe it’s a step towards mainstream adoption for Doge.
The fact that the market is becoming more optimistic has led to an increase in network activity. The futures open interest climbed 70% in seven days, growing from $989 million to $1.65 billion. This occurred despite the price pullback from recent highs, consolidating the idea that the market is performing well.
$0.40 price target
According to the latest research, Dogecoin has hit a key resistance level around the $0.24 price point. Consolidation is expected to take place over the next few weeks, with a breakout above the resistance level set to propel the meme coin to at least $0.40. This would signal the start of a healthy and sustainable upward momentum that can continue over the following months and ensure gains keep accumulating.
Analysts have noticed an inverse head-and-shoulders pattern on the one-day chart. This metric signals the presence of a bullish market trend, making a breakout very realistic. Opportunities for buying dips will increase, and some are predicted to move into swing trading as well. This speculative strategy occurs when tradable assets are held for a short number of days to profit from price changes.
When Dogecoin starts taking off, the users who have been attentive and followed its journey carefully will be glad to be on board and to have made the choice to invest in this asset.
To sum up, if you’re an investor and are thinking of including Doge into your portfolio, remember to analyze the market and always be aware of the latest shifts and turns occurring in this ecosystem. Having at least a rough idea of where the market will go next is crucial for your financial stability, as it will inform the choices you make regarding your ventures.
