Dogecoin was created to make fun of Bitcoin in 2013; after that, it gained popularity when Elon Musk backed the community. However, if you compare Bitcoin and Dogecoin, DOGE USD has very little value, but it is loved by its community.
The DOGE price is lower because, unlike Bitcoin, it has an unlimited supply of coins which does not make the coin scarcer. Still, Dogecoin is one of the large-cap cryptocurrencies in the world, with a total value of $8,244,089,348.
Like any other asset, the price of Dogecoin is based on demand and supply. However, it has an unlimited supply of coins, so we saw the price surge in 2020-2021 because many retail investors showed interest in DOGE cryptocurrencies.
They entered the market to buy Dogecoin, and it created scarcity in the short term. It was also supported by social media influencers and tongue-in-cheek Tweets by Tesla’s founder that swung the market up. After that, the fast-rising DOGE price, which already provided a return of 7000%, has attracted media attention.
The FOMO factor plays a vital role in driving the price of meme coins, but it would not last long. Are you interested in investing in DOGE? Please read our Dogecoin prediction before investing.
On the daily chart, Dogecoin has been under a side-wise movement, consolidating between a range of $0.05 and $0.08. At the time of writing this post, DOGE was trading around $0.062, which means it is trading around the support level and should move upward to the level of resistance.
The candlesticks are forming in the lower range of the Bollinger Bands, MACD is bearish, and RSI is around 40. We think it is not a good time to invest for the short term in the DOGE token.
Meme coin is not a good option to buy for the long term because it depends on news and community sentiment. Moreover, the long-term chart of Dogecoin also reflects this view because it has been in a side movement, and investors did not get a good profit.
DOGE reached a significant high of $0.73, but the investors still struggle to get their money back. It is tough to average the price in the long run, especially for meme coins. So, if you have good confidence and faith in meme coins, you can invest for the long term. Otherwise, you should prefer only a short-term investment in Dogecoin.