Dogecoin price drop sparks buy-the-dip trend as fans dream next big run
With the world’s largest cryptocurrency crash in recent months, it’s worth asking if a dogecoin price recovery is on the cards.
The price of Dogecoin dropped yesterday, but it immediately recovered back to about 5% lower than its previous level. This event is called a “correction” and can happen after a big run. Dogecoin is only two months old but it has seen significant price growth already. That makes it a great candidate for a correction.
It’s a veritable crypto gold rush right now. Prices for Bitcoin, Ethereum, and a host of other cryptocurrencies are soaring thanks to the use of so-called “tokens” in the most popular altcoin, which many believe will become the next Bitcoin. But there’s a risk that the price rise could be temporary and that altcoins might not be able to hold their value, or even survive as a result of the growth.. Read more about dogecoin news and let us know what you think.
Summary of the situation
– The rise of dogecoin has been sparked by speculation from Elon Musk and Mark Cuban.
– The cryptocurrency is trading at $0.25 after hitting an all-time high of $0.75.
The meme-inspired cryptocurrency reached an all-time high a few months ago, but is now on the decline. During this boom, the cryptocurrency’s value went from half a penny to $0.72, up 14,300%.
The spike is a thing of the past, and as of today, the cryptocurrency has not stopped losing capital. DOGE is now capitalized at $0.25, which is close to its official value at the beginning of the year. Many investors are wondering if it is time to trust Dogecoin or if they should forget about this crypto currency forever.
Dogecoin: Cryptocurrency is born from a meme
In 2013, two software engineers created the cryptocurrency as a joke, inspired by the Shiba Inu meme. Since this virtual asset is not substantially different from other cryptocurrencies, its creation was not initially considered. However, the DOGE scheme has been an optimizer of bitcoin transactions for many years.
Dogecoin can handle 40 transactions per second and over 50,000 movements per day. This shows a significant improvement over legendary cryptocurrencies like Ethereum and Bitcoin. But unlike popular tokens, DOGE does not have a huge capitalization to attract investors.
The only problem with DOGE compared to, say, Ethereum, is that it has no real use. But Ethereum is being used for smart contracts and thousands of new technologies inspired by the protocol.
True Glory DOGE
Given that Dogecoin is a low-cost cryptocurrency with no purpose, an investor will be interested in its prominence. DOGE’s value has risen thanks to speculation from Tesla CEO Elon Musk. A few tweets about the cryptocurrency were enough to send its value soaring.
But Mark Cuban also talked about investing in cryptomemos. Cryptocurrency has risen to the top 10 favorites thanks to these two great popularizers of the virtual market. However, DOGE will lose this position in the event of a downward trend.
If you are wondering if you should invest in DOGE when the market is down, it is not recommended. Elon Musk hasn’t shown much interest in cryptocurrencies yet, and that’s because he doesn’t have any clear goals yet. At the time, DOGE was just a cryptocurrency that rose in value through speculation and collapsed when it began to be ignored.
In addition to DOGE, Shiba Inu corresponds to an alternative cryptocurrency that has increased in value. However, this token may be the same as DOGE, although it is increasing. Investing in DOGE involves high risk; there is no guarantee of growth like Bitcoin, Ethereum or Litecoin.After a week of sideways trading, it was clear to most onlookers that Dogecoin was not going to be a long-term investment. The market had been shaken by the technology behind it, which raised concerns about its network security and even put it at risk of being declared a security and subsequently delisted from major exchanges. After its sudden and unexpected death, it was clear that Dogecoin simply wasn’t going to last, but that didn’t stop its fans from hoping the project was just a bump along the road.. Read more about will dogecoin dip again and let us know what you think.