Dogecoin was started as a payment system as a joke. Dogecoin got into so much news as it was launched as a joke in December of 2013. It is much like Bitcoin but with a broader population outreach. Dogecoin uses the Luckycoin framework, a cryptocurrency that was based on Litecoin. The logo of this cryptocurrency is taken from a popular dog meme. The meme resembles the native Japanese dog Shiba Inu, which is used as a hunting breed.
What is the fuss around Dogecoin?
The huge rally of dogecoin and its meme face icon has created lots of noise on the crypto counters. But it was the tweets of Elon Musk which gave this cryptocurrency a sharp jump.
There are rumours that Dogecoin will be used by Elon Musk’s SpaceX. The optimistic possibility of this coin being used as a form of currency in case musk can colonize mars has been a different aspect boosting the valuation of this coin. This crypto asset witnessed some lackluster movements in the recent past amid all the announcements and tweets regarding this altcoin.
There are a total of 125 billion doge coins in circulation and it currently trades well below 50 cents. It even made an all-time high of 80 cents on May 05, 2021, but most of its value dissipated after the massive profit booking and panic selling in the broader crypto market. From $0.0008 on December 18, 2020 to the current price of close to $0.35 on May 25, 2021, the value of this cryptocurrency has risen over 400 times.
A sum of $2000 invested in Dogecoin on December 18, 2020 would have generated close to a million USD in May 2021. Considering the recent high of 80 cents, one could have easily made almost two million USD. The numbers are fascinating but what is the scope in this crypto? We have covered all the relevant topics and scope.
Why does Elon Musk frequently tweet about Dogecoin: Learn how it can impact the coin value!
In recent times, the tweets of Tesla CEO have showcased different opinions and claims with regards to different cryptocurrencies, especially after finding out about Bitcoin’s coal mining source and considering it as harmful to the environment, and eventually, it has caused a massive drop in the entire crypto market.
He came up again with a tweet that he is interacting with North American Miners to opt for renewable and green sources for mining, this shows a gesture that he is still with cryptos in the fight of Fiat Currency versus Cryptocurrency. In this recent tweet of his, he even provided links to Reddit & Github and tagging developers of Dogecoin to come up with ideas.
— Elon Musk (@elonmusk) May 24, 2021
Dogecoin Price Analysis
Dogecoin is currently hovering near its 50 Day Moving Average which is a good short-term support. If it manages to breach this support level, there can be a breakdown and showing a downward rally after breaking the support level can offer a good short selling opportunity.
After a good correction of almost 50% price drop from the recent all-time high of $0.76 is visible in the trend line. According to our Dogecoin prediction, traders are advised to make a Long Position after it significantly surpasses the psychological barrier of $0.50 levels. While investors are waiting for a clear signal, dogecoin seems to be consolidating around its imminent support levels of 50 DMA.
On the contrary, the long-term position of this cryptocurrency could reach a new all-time high, if it gains actual applicational benefits in the domain.