Price Analysis

Price Analysis of Dogecoin (DOGE)

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Dogecoin is an altcoin that was designed to reach a much broader demographic than Bitcoin. The developer, Markus, wanted to keep this cryptocurrency fresh and fun so that it was far off and separated from the controversial past of Bitcoin and other similar digital currencies. Hence, Dogecoin was introduced in December 2013, as a ‘joke currency’ featuring a likeness of Shiba Inu Dog from the ‘DOGE’ meme. However, it grew in value and created a whole online community with thousands of users sharing the currency and posting memes about it online. In 72 hours, from the time it was introduced into the market, Dogecoin jumped nearly 300% in value, bouncing from $0.00026 USD to $0.00095 USD, with a volume of billions of Dogecoins per day.

The coin reached a capitalization of $60 million USD in January 2014, pushing the currency amidst the top cryptocurrencies in the market. In comparison to other significant cryptocurrencies, Dogecoin had a fast initial production schedule, with 100 billion coins in circulation by mid-2015 and an additional 5.256 billion coins every year.  China’s decision to forbid Chinese banks from investing in the Bitcoin economy boosted the growth of this currency many folds. After its comeback from the online hacking, in January 2015, the trading volume of Dogecoin briefly surpassed Bitcoin and other cryptocurrencies combined. At the beginning of 2018, Dogecoin reached a $2 billion market cap.

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Dogecoin chart

Based on analysis from Coinmarketcap, Dogecoin (DOGE) stands in the 25th position in the cryptocurrency market. The market cap value of DOGE on February 20 at 14:39 UTC was 245,536,073 USD. Recent reports show that the percentage value of DOGE’s MCap value has decreased in the recent past. The market cap value on January 20 was 254,689,518 USD, which is 3.59 percentage value higher compared to the current value. The survey on this cryptocurrency shows that, though there has been an equal number of peaks and downs, the market cap value has been gradually increasing. Doge’s value reached its peak in February 2018 and fell drastically in April 2018. Finally, the market cap value reached more than 75 million USD in the mid of September 2018, after which there has not been a notable increase in the value.

The price of DOGE/USD pair is 0.002075, and that of DOGE/BTC is 0.00000053. The 24h volume of Dogecoin cryptocurrency on February 19 was 28,343,123 (14:39 UTC). Based on the analysis by Coinmarketcap, the data about the trading moment of price and Market Cap value has been deducted. The reports show that BTC had been on a high tide between 2014 and 2018. In June 2018, the value of BTC reached the peak of 0.00000143, after which the Mcap/USD pair took the lead. The pair surpassed the BTC pricing and reached their highest of 1,425,522,860 USD and 0.012648 respectively in January 2018. The price of USD took a sharp curve and reached its milestone between December 14 and December 19 when the price increased from 0.002047 to 0.002744 – a massive 34.05 percentage increase. However, the MCap value took the lead and has been progressing gradually is followed by BTC and USD.

The 20-day Exponential Moving Average (EMA) exhibits an uptrend. The current Mcap value has increased from its respective value of $227,523,824 USD on January 30 by 7.92%. The 14-day moving average also points to an uptrend with a 9.81 percent increase. Since both the averages are ascending, the cryptocurrency falls into the bulls market. With the bulls’ pressure, the investors would be happy to indulge in long term investments and with the uptrend market, the balance falls in favor of buyers. Hence, traders with short term investments are also advised to invest revenue which will be beneficial for both the trader and the DOGE’s market.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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