Is Dogecoin a Good Investment?

Dogecoin burst onto the scene during the first half of 2021, fuelled by the powerful combination of social media hype and name drops from high-profile celebrities.

Although Dogecoin’s price has decreased significantly from May 2021’s lofty heights, many investors still believe the coin has significant upside potential – especially after Elon Musk acquired Twitter in a $44 billion deal.

This article will seek to answer the question ‘Is Dogecoin a good investment?‘ by discussing the coin’s utility and price prospects.

How Dogecoin Has Performed Since Launch & in 2024

Those who invest in cryptocurrency may already know about the origins of Dogecoin, as the coin was initially created as a joke by two software engineers. Billy Markus and Jackson Palmer worked for IBM and Adobe respectively, and aimed to develop a peer-to-peer payment system (similar to Bitcoin) but with less controversial connotations.

Dogecoin was officially launched in December 2013, using a proof-of-work (PoW) algorithm that is closely related to the structure used in Litecoin. The coin immediately attracted a high volume of traders, helping the DOGE price surge by over 920% in January 2014. However, the hype was short-lived, and Dogecoin’s price sank back to $0.0002, where it remained for the next few years.

The cryptocurrency bubble in early 2017 saw more people than ever opt to invest in Dogecoin. This saw Dogecoin’s price increase by a remarkable 2,196% in just a few months, highlighting to investors that there may be more to DOGE than meets the eye. There were similar price spikes in the following years, although it was only in early 2021 that Dogecoin really hit the big time.

The short squeeze caused by vast numbers of traders opting to buy GameStop stock ended up having a knock-on effect on ‘meme coins’ like Dogecoin, with retail investors plunging their money into DOGE for purely speculative reasons. This started a chain of events that led to Dogecoin’s price rising exponentially, going from $0.01 in January 2021 to an all-time high of $0.7579 in May 2021 – an increase of over 7400%.

This high was only fleeting, and the investors who opted to buy Dogecoin gradually began closing their positions, forcing the price back down.

The price has continued in freefall since and was down below $0.06 in June 2022 – a more than 90% decrease from the all-time high.

When Elon Musk took over Twitter in mid-October there was a huge race to buy DOGE with the coin gaining more than 140% in just two weeks as investors and analysts speculated that the token would be used for tipping or subscription payments on the platform.

While that is still being explored, there has been no official word and DOGE has started to slip in price, briefly dipping back below $0.10.

Dogecoin Price

When considering a Dogecoin investment, it’s not only essential to understand the coin’s price history, but the position that price is in right now. At the time of writing in November 2022, Dogecoin’s price is still up 63% on the monthly chart.

But can it still be considered one of the best meme coins, given the steep drop we have seen over the past year and limited utility beyond being a peer-to-peer currency?

😉 pic.twitter.com/eaIYaDRBnu

— Elon Musk (@elonmusk) November 1, 2022

From a technical standpoint, there has been clear support at $0.10, with the coin twice hitting that in the last week and instantly returning.

However, with the rest of the crypto market crashing – with Bitcoin down 4% and Ethereum 6% in 24hrs, Dogecoin has been one of the biggest losers, with investors often selling off their riskiest assets first when trouble looms.

Of the top 100 coins, only FTX token has lost more in the last seven days than DOGE, which is now down 27%.

Dogecoin sits at 29, according to the Relative Strength Index (RSI) placing it in the ‘weak’ category.

Despite his hints on Twitter, unless Elon Musk makes a big announcement on the coin, it appears DOGE could be the subject of more selling pressure and bearish swings, especially with many analysts predicting more pain in the market before the end of 2022.

Dogecoin Highs and Lows

Now that you have an overview of Dogecoin’s price history, let’s briefly summarize the coin’s major highs and lows since inception:

• January 2018 – High of $0.0194 (1584% increase in two months)
• March 2020 – Low of $0.0013 (93% decrease from January 2018’s highs)
• January 2021 – High of $0.1002 (2,373% increase in one month)
• May 2021 – All-time high of $0.7376 (18,739% increase from December 2020)
• February 2022 – Low of $0.1068 (85% decrease from all-time highs)
• June 2022 – New low of $$0.053 (93% decrease from all-time high)
• November 2022 – High of $0.1554 (192% increase from June 2022)

Dogecoin Price Prediction

Given the information presented above, is Dogecoin a smart investment? Like many of the best altcoins, it’s challenging to base price predictions on technical factors alone, as the price can be highly volatile on a daily and weekly basis. Although DOGE has showcased some bullish momentum recently, we need to dig a little deeper when making a price forecast.

The majority of Dogecoin investors will be hopeful that the coin could return to the all-time highs of May 2021 – and potentially beyond.

However, from an objective standpoint, this would be extremely difficult since those highs resulted from a ‘perfect storm’ of external factors.

The massive number of retail traders that invested in DOGE, combined with the coin being mentioned in the mainstream media, helped push price to levels that it could not have achieved on its own.

This sequence of events also occurred later in the year when many investors opted to buy Shiba Inu, which caused a snowball effect leading to more and more people investing.

Ultimately, this pushes the price higher, but it can form a ‘bubble’ since these price rises are not based on utility or fundamentals.

Furthermore, since the price of DOGE and SHIB exploded, thousands more meme coins have launched onto the market with much more utility.

Other meme projects like Tamadoge offer NFT ownership and play-to-earn gaming as well as a small supply, making it more valuable, while the likes of Vita Inu offers lightning-fast transaction speeds.

Turning our attention back to our Dogecoin price prediction, we believe that DOGE could provide solid returns for investors over the longer term.

However, we wouldn’t expect these returns to be anywhere near the quadruple-digit returns experienced at the start of 2021.

In the next few months, we expect Dogecoin to continue rising towards the resistance level located at $0.2130. This would represent a solid 33% return from the current price. Following this, the next target would likely be the psychological level of $0.3000, where there appears to be significant selling pressure. If DOGE reaches this area, it would result in a return of 87% from the price we see today.

Dogecoin Utility – Is It Investable?

The best cryptos to invest in usually have real-world utility that helps them become inherently valuable.

A prime example of this is Ethereum, one of the most popular cryptocurrencies due to the network’s support for smart contracts and NFTs. With that in mind, how does Dogecoin’s utility stack up against the major players in the market?

Firstly, it’s important to note that Dogecoin’s utility is relatively low compared to the likes of Bitcoin, Ethereum, and Cardano. The coin was initially designed to be used as a way to transfer value between two people – and it hasn’t expanded beyond that.

Dogecoin is based on the Scrypt algorithm and employs a proof-of-work (PoW) consensus protocol. Ultimately, this does mean that transfers made using Dogecoin are significantly faster than Bitcoin. However, Bitcoin was the ‘first mover’ in the space, so it’s doubtful that people will begin using DOGE en masse.

The coin can also be used to pay for goods and services. According to data gathered from cryptwerk, DOGE is now accepted by over 2,000 merchants worldwide. There are a few that some people may recognize, such as CoinPayments and HostMeNow, although the vast majority are minor companies.

Dogecoin has also been used as a way to tip people online. This was achieved through the use of ‘Dogetipbot’, which allowed people on Reddit and Twitch to send DOGE to other users in just a few clicks. However, the Dogetipbot was discontinued a few years ago, so this use case isn’t viable anymore.

As you are probably aware by now, Dogecoin doesn’t appear to have any significant use cases that would lead to demand from a large audience.

In simpler terms, Dogecoin seems to be a vehicle for speculation, with the coin being traded on many of the best altcoin exchanges. Due to this, DOGE lacks the basis for a good long-term investment, meaning the coin is likely more suited to casual or risk-seeking investors.

Should I Buy Dogecoin?

Overall, is Dogecoin a good investment? Advocates for Dogecoin believe that it is one of the most undervalued crypto assets, even after the substantial price rises in recent years.

However, from a fundamental standpoint, it’s hard to make a case for DOGE generating similar returns to 2021. Moreover, many investors are still wondering is it too late to invest in Dogecoin?

One of the main elements going in Dogecoin’s favour is its strong community backing and the continued speculation of Twitter utility.

The Dogecoin subreddit boasts more than 2.4 million members, highlighting that there is still buying power ready to unleash.

Having said that, anytime Dogecoin displays some upwards momentum, selling pressure forces the price back down.

In our opinion, Dogecoin could still be a good investment for people who have some spare money and are happy to open a highly speculative position.

Should Elon Musk make an announcement that Twitter will use DOGE for tipping or its new subscription service, the price could skyrocket.

There’s certainly scope for Dogecoin to provide double (or triple) digit returns – but it’s just as likely that the coin could plummet even further in the months and years ahead.

For this reason, DOGE investing is perhaps more suited to risk-seeking investors rather than low volatility investors.

Is Dogecoin a Good Investment – Conclusion

To summarize, this article has covered everything you need to know about making a Dogecoin investment, highlighting the coin’s history before presenting in-depth price predictions for the weeks and months ahead.

Although Dogecoin has had a great couple of years, the hype has massively subsided since the coin lacks any significant use case as of now. As mentioned above, if Twitter somehow incorporates the coin, its price will be much higher. Many sources still list it as one of the best cryptos to buy right now.

However, that remains speculation, and we generally recommend investors lean towards cryptos with real-world utility, such as the alternatives below.

Dogecoin Alternative – Love Hate Inu

Love Hate Inu is making waves in the web 3.0 as the first vote-to-earn meme crypto with practical use cases. This new vote-to-earn system is exciting, offering a fresh take on online voting. 

With its unique features, it’s no surprise that the platform’s presale has already attracted significant investment of over $500,000 USDT within a week.

Those who purchase tokens now can see a significant increase in value, with a projected price of $0.000145 USDT after eight presale stages. This presents an opportunity to grab a 70.5% ROI on the current price of $0.000085 USDT.

Purchasing $LHINU tokens is simple, thanks to Love Hate Inu’s user-friendly presale website. This platform allows users to buy tokens using various payment methods, including ETH, Tether, and credit cards.

Additionally, there’s a beginner’s guide that provides step-by-step instructions on how to purchase $LHINU tokens.

What is Love Hate Inu?

Love Hate Inu’s blockchain-based voting system offers a unique and exciting approach to community-centric decision-making. This innovative platform allows users to vote on several topics, from political issues to pop culture.

The platform is revolutionizing the vote-to-earn industry by offering a new and innovative way for users to engage with online voting.

With its advanced blockchain technology and growing user base, Love Hate Inu could follow a similar growth trajectory as other meme utility tokens like Tamadoge, Dogecoin, and Shiba Inu.

Stake-to-Vote

Love Hate Inu’s user interface is designed to be intuitive and user-friendly, allowing users to navigate the platform and participate in voting easily. Vote submission is a crucial platform component, enabling users to cast their votes anonymously and securely.

According to the Love Hate Inu whitepaper, the platform’s voting system is designed to prevent tampering and spamming, ensuring a fair and transparent voting process. Users can stake tokens to increase the weight of their votes, giving them a greater say in the outcome of each vote.

Why Should you Invest in $LHINU?

Love Hate Inu is a Web3 platform that offers a voting system that is secure, reliable, and anonymous. Unlike its competitors, Love Hate Inu’s voting system is built to prioritize privacy and user anonymity.

The presale will offer 90% of the 100 billion tokens, while the remaining 10% will be kept for community incentives and exchange listings. This approach prevents the prospects of a rug pull while ensuring long-term liquidity.

You can also enter the Love Hate Inu Telegram group to stay updated.

PlayDoge Token – P2E Dogecoin Alternative

Another fun new alternative to Dogecoin comes in the form of PlayDoge token. It’s essentially a presales token connected with a play-to-earn mobile game similar to Tagamochi. You look after your virtual pet and earn rewards through $PLAY tokens. It’s a classic 90s vibe that will bring back some fond memories as you bond with your pet and make new ones.

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