Will DOGE reach $1 this cycle? It’s a ‘crapshoot,’ say analysts

As more memcoins join the cryptocurrency scene, Dogecoin’s (DOGE) dedicated fanbase may help prevent it from becoming forgotten, yet experts question the feasibility of it reaching a dollar during this market trend.

If Dogecoin’s price was one dollar, it would be a 36% jump up from its May 2021 peak of $0.73 and a whopping 525% rise from its current value of $0.16.

Will DOGE reach $1 this cycle? It's a 'crapshoot,' say analysts

In the past week, DOGE experienced a modest increase of 2.58%. However, this is relatively small compared to the growth of other major memecoins during the same period, according to CoinMarketCap’s statistics.

In the past week, the three memecoins with the next largest market capitalizations – PEPE (PEPE), Shiba Inu (SHIB), and Dogewifhats (WIF) – saw significant price increases. PEPE surged by 43%, Shiba Inu rose by 17.42%, and Dogewifhats went up by 14.43%.

“According to anonymous trader Rekt Capital, speaking with CryptoMoon, DOGE is known for its volatility among altcoins. The growing attention for other meme coins doesn’t necessarily change investors’ views on DOGE as the leading meme coin.”

“Other meme coins launching doesn’t mean DOGE will suffer,” Rekt added.

Pav Hundal, Swyftx’s lead crypto analyst, expressed caution towards DOGE‘s price surge. He pointed out that the currency boasts a large following, but any sudden price jumps could trigger massive sell-offs among long-term investors.

The fate of DOGE‘s price reaching a dollar is uncertain and heavily relies on the actions of the numerous small investors who purchased the cryptocurrency in 2021 and currently face paper losses.

“It’s a crapshoot. If most of these people decide to take quick profits during the cycle, you could start to see selling pressure ratchet up.”

Hundal mentioned that Dogecoin hasn’t delved into the detailed financial records of the previous market cycle yet. Specifically in the derivatives market, there has been a substantial 56% decrease in Open Interest since early April.

The amount of DOGE futures contracts yet to be settled, as represented by the OI in Doge, has dropped significantly from $2.15 billion in early April to its present value of $928.72 million according to CoinGlass statistics.

Although the use of derivatives for Dogecoin has decreased, Rekt Capital maintained an optimistic viewpoint. They believed that the “wave-like pattern” in Dogecoin’s price chart indicated a strong possibility that its value would eventually hit one dollar during this market cycle.

He emphasized once more that Dogecoin is rich in “historic background” and follows quite regular patterns, a fact often discussed among traders on social media.

A pseudonymous user named Blockchain Mane shared with his 15,300 followers on April 24th that historically, Dogecoin has experienced price increases in the month of May.

Will DOGE reach $1 this cycle? It's a 'crapshoot,' say analysts

Another possibility: Rekt additionally considered possible social media updates from wealthy entrepreneur Elon Musk as a possible factor influencing the price, pointing out that Musk continues to show strong interest in Dogecoin.

Starting from April 17, Musk has frequently engaged with popular DOGE figure DogeDesigner on platform X.

In April 2023, Musk asked a US judge to throw out a $258 billion lawsuit filed against him by investors who claimed he deceitfully marketed Dogecoin as part of a pyramid scheme. However, more recently, Musk has given indications that his enthusiasm for cryptocurrencies might have decreased slightly.

Musk barely gives any consideration to cryptocurrencies when speaking with Cathie Wood in late 2023.

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2024-04-24 07:40