Is $1 Dogecoin Possible?

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Last Updated on 15 April 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
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As the whole list of CoinMarketCap’s top 20 turned green yesterday, Dogecoin stood out as the one who added a whopping 80%. Having now risen several thousands of percentage this year alone, no one dares to claim that Dogecoin is going to zero anytime soon (except for Mike Novogratz, who is very bearish on the coin).

Dogecoin (up 2% today) is a crypto coin that actually started as a joke. Jackson Palmer, one of the founders, wanted to show that people invest without doing any research. He used a dog as the symbol of the cryptocoin.

Ironically, Dogecoin quickly became one of the largest coins on the internet because of the meme and it looked so cute. When Elon Musk admitted in 2020 that Doge was his favorite coin, the DOGE value rose rapidly. Since then, Kiss singer Gene Simmons as well as rapper Snoop Dogg have admitted buying in.

https://twitter.com/elonmusk/status/1382267664895070209

As long-time technical analyst Peter Brandt stated in the beginning of the year, Dogecoin formed a classic cCup and Handle pattern around the 5 cents mark. After a long time of waiting (February and March), it exploded last week and started moving upward.

Advertentie.

What’s next for Dogecoin?

Yesterday it traded at around 13 cents already, and as these are new all-time-highs for the coin, there’s no telling where it might end up.

The performance of Dogecoin was due to three main factors. First, the Bitcoin price managed to move above its previous all-time high of $62,000. Its price then accelerated and was soon seen closing in towards $65,000. As Dogecoin (and XRP for example) are cheap nominally, many investors tend to buy them as alternative versions of Bitcoin, in order to have something else in crypto in their wallets as well.

With all this, is Dogecoin $1 even possible? Last year I would have said no, but this year I’m starting to have serious doubts. First of all, it is seen as anti-establishment, which gives it’s power. Secondly, it’s a meme, and people like those. Lastly, do not underestimate the power of the internet, just look at how many billions the hedge funds had to prop up to beat WallStreetBets when they did their epic short squeeze of GameStop.

If enough internet DEGENS (degenerates) decide that they want to hold Dogecoin rather than any other crypto, there is nothing that can stop it from becoming a legitimate asset.

However, if Dogecoin would reach 1 dollar, its market cap would be at least 130 billion dollars. That’s half of the current Ethereum market cap and higher than the current market cap of Binance Coin or XRP. Just to put it in perspective. It is of course likely that when Dogecoin rises that other top 10 coins will also rise.

Bottom and Top

In order to decide where bottom and top of Dogecoin is, let’s finish off with these two quotes from crypto connaisseurs, and after that, you decide for yourself.

The Bottom – Galaxy Investments CEO Mike Novogratz:

Let’s put people in the safest, best stuff, not, you know, these joke coins.

The Top – Gemini cofounder Cameron Winklevoss:

If people believe Doge is money then it’s money.

igor_igorevich / Depositphotos.com