Why Is Dogecoin Going Up?
The answer to the question “Why is Dogecoin going up?” might not be as simple as many consider. We have seen how the virtual currency has been growing over the last few months and there is no clear explanation related to why Dogecoin is going up today.
In this guide, we are going to be giving some possible explanations related to the price increase experienced by Dogecoin (DOGE). Although there might be other reasons, we could have a clearer answer regarding the recent price behaviour shown by DOGE.
What is Dogecoin (DOGE)?
Dogecoin (DOGE) is one of the largest cryptocurrencies in the market and also one of the digital assets that experienced a lot of hype. The price of the virtual currency has been fluctuating like most of the digital assets in the market, but this coin is somehow special.
The project was created back in 2013 and since then it has attracted large attention from the crypto and non-crypto communities. Indeed, while in the beginning, it was just a virtual currency created for enthusiasts, it fastly became a cryptocurrency that was more than a simple pump & dump.
Compared to other virtual currencies, Dogecoin was created as a meme cryptocurrency. If you are wondering why is Dogecoin going up, then this could be one of the reasons you should pay attention to.
Billy Markus and Jackson Palmer are Dogecoin’s creators. They are now not working actively anymore on the project. The community was able to take Dogecoin on its shoulders and since then it has been in charge of promoting it.
Dogecoin was created as a fork of Litecoin (LTC). That means that it has many similarities with both Bitcoin (BTC) and Litecoin. The digital asset has a Proof-of-Work (PoW) consensus algorithm that makes it possible for everyone to participate on the network. Rather than using energy-consuming and expensive ASIC miners Dogecoin requires GPU power.
One of the main features of Dogecoin is related to its logo. The logo represents a Shiba Inu dog that was famous for being part of several memes on the internet. If you didn’t know why is Dogecoin going up, then you should also pay close attention to this detail.
Where can I buy Dogecoin?
Users can buy Dogecoin in a wide range of cryptocurrency exchanges. If you see Dogecoin going up and you don’t want to miss the chance to buy it, then you can purchase it using most of the virtual currency exchanges available in the market.
Users can buy Dogecoin in a wide range of cryptocurrency exchanges. If you see Dogecoin going up and you don’t want to miss the chance to buy it, then you can purchase it using most of the virtual currency exchanges available in the market.
Some of these platforms include Binance, OKEx, Poloniex and KuCoin, among others. Depending on where you are located you would be able to use one or another. Cryptocurrency exchanges are very easy to use and would make it even easier for you to get access to some of the largest virtual currencies in the market.
There is no platform that works exclusively with Dogecoin. Most of the trading platforms have dozens of trading pairs. You might be able to even deposit fiat currencies and purchase DOGE with your local currency if your local exchange supports this coin.
However, you can also buy Dogecoin from other users that already have this virtual currency. Nevertheless, you should always know the person you are buying DOGE from to avoid scams or fraudsters.
As mentioned before, crypto exchanges are the best option if you want to get access to DOGE in a fast and easy way.
Why is Dogecoin Going Up?
There are many reasons related to why is Dogecoin going up. There is no clear answer and it is not as simple as many consider. However, in the following sections, we are going to explain to you why we consider that Dogecoin is moving higher. It is also worth mentioning that the price of the digital asset has literally skyrocketed.
Dogecoin Price
The main topic of this article is understanding the reasons why is Dogecoin going up. But before, we need to understand what happened with Dogecoin and how its price evolved over time.
From 2014 and until 2017, the virtual currency has been fluctuating between $0.0001 and $0.004 in early 2017. This shows that there was already a strong price increase from its lows to its highs at that time. This represented a price increase of 3,900%.
During the bull run of 2017 and 2018, Dogecoin was able to reach a price per coin of $0.018 on January 07, 2018. This market the top for Dogecoin for a long period of time and until 2021. Indeed, in early January 2021, Dogecoin was traded below $0.01 per DOGE.
However, the first massive spike took place when Dogecoin surged to above $0.08. At that time, several individuals outside the crypto market were purchasing DOGE. For example, the famous pornstar Mia Khalifa shared on Twitter that she purchased “DOGE stock.”
Despite that, a new bear trend started for DOGE. The virtual currency fell below $0.05 until April 14th, 2021, when DOGE surged again and reached an all-time high of $0.39 per coin. Everyone was very excited about this price increase, which couldn’t be explained by using technical analysis or any other type of measurement.
Nonetheless, things didn’t end here. At the time of writing, DOGE has reached a new all-time high above $0.63 per coin. This shows that DOGE seems to have no roof and that the digital asset could continue moving higher in the coming months.
We are not financial advisors and the information shared in these posts should be considered for educational purposes only. We are not responsible for any investment decisions you make following this guide. Never invest more than what you are able to lose.
Dogecoin and Elon Musk
Dogecoin and its community have a close relationship with Elon Musk, the CEO of Tesla. The Dogecoin community is not an isolated one. They also purchase other digital assets, and they have always used Dogecoin as a meme digital asset to push crypto adoption forward.
Elon Musk has been appointed Chief Executive Officer (CEO) of Dogecoin for a short period of time a few years ago. He stated on Twitter that the coin was his favourite digital asset in April 2019. At the same time, he changed his Twitter description to Dogecoin CEO.
Of course, he was not the real Dogecoin CEO, but he showed that the community celebrates these types of games and funny situations. This was exactly the real representation of the Dogecoin goal.
However, this is not the only time in which Elon Musk has commented something about Dogecoin. He now tweets about Dogecoin on a regular basis and all DOGE followers celebrate these interventions made by the CEO of Tesla.
This could be one of the answers to the question of “Why is Dogecoin Going Up?.” Most of the times in which Elon Musk tweets about Dogecoin, the price of the virtual currency moves higher. Although the correlation is not perfect, it is highly possible the Dogecoin community would purchase DOGE if Elon Musk mentions it.
Technical Analysis
The technical analysis of Dogecoin has usually been performed against Bitcoin. The reason behind this is due to the fact that DOGE was usually traded against BTC or LTC. Nowadays there are many other trading pairs available in the market, this, the technical analysis for DOGE has moved to other pairs as well.
Over the last years, there is a clear pattern in terms of BTC that could have been used by traders to increase their positions in BTC or DOGE as well. The pattern repeated itself several times per year. In some cases, the pattern required more than an entire year to spike again.
The pattern was a clear and sudden spike in the price of DOGE followed by a bear trend that lasted several months. Once DOGE reached a certain price, it spiked again and entered a new bear market after the massive spike. In some cases, the spikes could be over 200% or 300%. This shows the power of the Dogecoin community and how it could affect the price of the digital currency.
This pattern has been broken a few weeks ago. The digital currency massively surged, leaving the all-time high in BTC or USDT terms behind. Dogecoin was able to surge by over 450% from its previous all-time against Bitcoin. The main question that the community and analyst have is whether Dogecoin will now enter a new bear trend as it happened in the past or if it will remain close to its highs.
The answer seems to be focused on why is Dogecoin going up rather than when DOGE will enter a new bear market. It is not so easy to know why is Dogecoin going up.
Other Aspects
There are other aspects that we should take into consideration in order to understand why is Dogecoin going up. However, there is no clear reason for the digital asset to continue moving higher.
Dogecoin is now the 4th largest cryptocurrency in the world with a market valuation of $77 billion and a price above $0.60. The digital asset surpassed other virtual currencies such as XRP, Tether (USDT), Cardano (ADA) and Polkadot (DOT).
Most of the theories that apply to efficient markets do not apply to Dogecoin. Even crypto analysts and investors that are used to pump & dumps and other types of market manipulation cannot explain Dogecoin’s expansion towards new all-time highs.
If you want to understand why is Dogecoin going up, we need to take into consideration many aspects. This is why we have added a small list of other things that we should take into consideration about Dogecoin.
Meme Mania
As we previously mentioned, Dogecoin is a cryptocurrency that is closely related to the meme culture online. Dogecoin followers are usually using Shiba Inu memes, creating hashtags on different social media, videos and jokes about this virtual currency.
This does not only make Dogecoin known around the world, but they are also reaching new individuals that could be interested in purchasing this virtual currency.
These trending topics, videos and promotion related to Dogecoin, in addition to Elon Musk’s tweets and combined with the technical and regular jumps experienced by DOGE should be taken into consideration.
However, we should also consider that there has been a bull market ongoing. Thus, we should certainly analyze that as well.
Altseason
When there is a bull market, everyone is focused on Bitcoin. This is the leading currency. When Bitcoin moves higher, then there is a high possibility that other virtual currencies will also move higher. However, this is not linear.
During the last part of 2020 and early 2021, Bitcoin has been in a bull market. The virtual currency reached a massively high price (above $62,000). However, when Bitcoin starts slowing down, other digital assets start moving higher.
This has been a situation that repeated over the last years and during bull markets. Investors that registered large gains on Bitcoin move to other digital assets trying to extend their gains. Dogecoin could also be one of the virtual currencies benefited by the current altseason.
Altseason is the term used to define a market situation in which atlcoins move higher independently from Bitcoin. During altseasons, virtual currencies move higher at a faster rate than Bitcoin. This is where we see Bitcoin’s dominance fall and altcoins dominance grow.
If we want to know why is Dogecoin going up, then we should carefully analyze all these things and take our conclusions. Being in an altseason should have a positive impact on DOGE price.
Final Words
Dogecoin as a cryptocurrency has surprised most of the investors in the market. Even cryptocurrency analysts and investors, which are used to volatility, have been shocked by the amazing price increase experienced by Dogecoin.
The virtual currency could continue growing in the coming years. However, we also need to take into consideration that there will be bear markets. Additionally, we should also understand that we could be in a bubble.
Understanding why is Dogecoin going up is definitely important to know how the market could continue growing and which things we should take into consideration in future bull markets.
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