Dogecoin is exhibiting no indicators of slowing down because the endorsements maintain piling up
The global economy contracted a good deal in 2020. However, the stock and crypto bull markets have kept investors happy over the past year. This trend shows no signs of easing Bitcoin (CCC:BTC-USD) continues to gain ground despite occasional hiccups. But other altcoins are also causing a stir. One of them is Dogecoin (CCC:DOGE-USD), a decentralized peer-to-peer digital currency that supports online payments without traditional bank fees.
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Tesla (NASDAQ:TSLABillionaire Elon Musk is one of the earliest proponents of the coin, which is up nearly 1,000% so far this year. Though the cryptocurrency started out as a hoax in 2013, it is now one of the fastest rising stars in the crypto space based on several celebrities.
Elon Musk, who is currently offered on the world’s largest cryptocurrency exchange Binance, has asked the crypto exchange Coinbase to give the green light for Dogecoin for its platform. Given the huge interest in digital currency, this could happen sooner rather than later.
The main thing about Dogecoin is that it is inflationary rather than deflationary, which means that it mimics the real currency as there is no limit to the number of coins in circulation.
While it is difficult to predict future Dogecoin price developments, high profile approval and general craze for Bitcoin and the larger crypto space will continue to propel Dogecoin.
Dogecoin: From a Meme to a Viable Altcoin
Software engineers Billy Markus and Jackson Palmer started Dogecoin in 2013 as a joke. However, it has grown since then and is now in the top 20 crypto coins with a current price of $ 0.05785 and a market cap of around $ 7.46 billion.
What drives this impressive bull run? First is celebrity culture. Elon Musk, Gene Simmons, rappers Lil Yachty, and Snoop Dogg are some of the big names who have thrown their weight behind Dogecoin, resulting in a significant increase.
Similar to Bitcoin, investors are looking for new digital currencies that will rise with a similar margin. The fear of missing out (FOMO) and celebrity support will push the price to new highs.
Second, large financial institutions are warming to digital currency every day. PayPal (NASDAQ:PYPL), square (NYSE:SQ), Bank of New York Mellon (NYSE:BK), JPMorgan (NYSE:JPM), Citi (NYSE:C.), MasterCard (NYSE:MA), and Visa (NYSE:V.) are some of the names that are now expanding their suite of products to include crypto users.
Dogecoin is now also accepted as a method of payment by some online shops. It’s also used as a tip on any blog or post that you think deserves more attention.
The price predictions for Dogecoin are incredibly optimistic. Mark Cuban, owner of Dallas Mavericks, is confident that the digital currency can hit $ 1. Dogecoin founder Billy Markus has said that Dogecoin’s Bull Run says the rise of crypto is “nothing I can understand”. However, if the transaction volume persists, $ 1 is out of the question.
The @dallasmavs have made more than 20,000 #Dogecoin in transactions, making them the BIGGEST #DOGECOIN DEALER IN THE WORLD! We thank you all and can only say that #dogecoin will definitely beat $ 1 if we sell more Mavs Merch worth 6,556,000,000 #DOGECOIN
– Mark Cuban (@mcuban) March 6, 2021
However, due to the volatility, it is better to subscribe to the asset and take profits on a regular basis. It would be best if you didn’t treat Dogecoin as a buy and hold investment at this point.
Dogecoin: look ahead
On February 8th, the price of Dogecoin hit the highest price of $ 0.082605. That’s a long-term goal, but in the near future the bulls are hoping to consolidate their gains and march towards $ 0.0641. Dogecoin shows all signs of consolidation on a bullish retracement.
It has to stay stable along the bearish trend lines and then there will be a breakout. It is long overdue as the price has been moving sideways within the three moving average lines for some time.
Everyone is talking, investing and interacting with crypto like never before. As a result, crypto bulls are now in a unique position. For the first time, major financial institutions are relaxing the rules. They enable cryptocurrency custody solutions to store large amounts of tokens. Customers can now buy, hold or transfer crypto on major payment platforms like PayPal and Square.
With this in mind, Dogecoin and other altcoins will continue to gain momentum. However, as I mentioned in the previous sections, it is important that you schedule your entrances and exits and regularly take profits.
At the time of this writing, Faizan Farooque held (neither directly nor indirectly) positions in the securities referred to in this article.
Faizan Farooque is a contributing writer for InvestorPlace.com and numerous other financial websites. Faizan has several years of stock market analysis experience and was a former data journalist with S&P Global Market Intelligence. He is passionate about helping the average investor make more informed decisions about their portfolio.