Dogecoin (DOGE) is in the headline because of its price increase in last few days. The price of the coin increased by 5.2% in just 24 hours. Many people stared investing in this coin for this price increase.
If you are not sure, you should do the same or you should wait, this article will help you in understanding and decision making.
The reason behind the price increase:
Recently Elon Musk launched his new political party called “American Party“, which will support the use of cryptocurrencies like Bitcoin. Although, Musk did not mention the Dogecoin, but if you are follower of the crypto world, you must have the idea of how Musk support the Dogecoin.
Due to the Elon Musk’s influence on the crypto market, people started thinking that the Dogecoin will play a big role in his new vision. This can be the main reason behind this price changes.
There can be another reason as well like the overall positive mood in the market. After the recent changes in the Federal Reserve interest rates, investors become hopeful and confident. They are investing more in the risky investments like Cryptocurrencies.
Expert’s opinion on Dogecoin:
Experts has started to look at the Dogecoin more closely. Tech indicators for future price movement predictions, suggest that the Dogecoin will continue to rise.
For example, some financial experts hopping for a “bullish crossover” on Dogecoin’s price chart. This will increase the coin’s value. Some of the experts believe Dogecoin will reach to $0.20 very soon. But in this crypto world, future is always uncertain.
Are you going to invest in Dogecoin?
This depends on your own situation and how much risk you are willing to take. If you enjoy the excitement of investing in high risk and high reward assets, Dogecoin can be a great option for you.
For example, imagine buying Dogecoin in the past when it was just a meme coin and now seeing it increase in value. That is what early investors did and they already made huge profits.
But, before you buy, you should also consider the risks of this investment. Cryptocurrencies are famous for their price changes. Dogecoin can go up in value very quickly, but it can also drop just as fast as possible.
For example, in 2022 Dogecoin’s price dropped very fast during a market crash. That shows us that, how quickly things can change in this crypto world.
What are the risks you should consider:
The main risk with Dogecoin is that the crypto market is very unpredictable. A single tweet from someone like Elon Musk can cause for the price crash. That is why Dogecoin’s price is so volatile.
If you decide to invest, you should be prepared for sudden changes in prices and know that you can lose your money.
Also, Dogecoin started out as a joke and does not have the same kind of real world use as other cryptocurrencies like Bitcoin. While it has some loyal following and practical uses, it is still considered as a meme coin. That means its long term value is very uncertain.
What is the future of Dogecoin?
Dogecoin does have some potential for the future growth. The coin’s low transaction fees is very beneficial for small payments. If more businesses start accepting it, the price could rise even more.
But the Dogecoin has a lot to prove before it can compete with the more widely used cryptocurrencies like Bitcoin.
Your investment decision on Dogecoin is depends on your goals and the risk taking ability. If you are aware about the ups and down of the market, this can be a great investment option for you. But you must remember, the crypto market is very uncertain and the Dogecoin’s price can change very quickly.
