Three opinions on the prospects for Dogecoin
The cost of Elon Musk favorite cryptocurrency is 66% below the all-time high. Experts explained why an asset can return to peak values and in which case its quotes will continue to fall?
On Monday, June 28, the Dogecoin rate on the Binance crypto exchange rose 5%, to the current level of $ 0.25. The altcoin price is recovering after falling to a local low of $ 0.16 on June 22.
Despite the fact that over the past week, the cryptocurrency has risen in price by almost 56%, it remains 66% below the all-time high of $ 0.73, set in early May.
“In the long term, Dogecoin may leave the top 20 cryptocurrencies”
It is difficult enough to call the Dogecoin project something serious, because the popularity of the coin and, ultimately, impressive growth was brought primarily by Elon Musk tweets, said Yuri Mazur, head of the data analysis department of CEX.IO Broker. According to him, the fall in the value of altcoin occurred after the billionaire stopped aggressively supporting him.
In terms of market capitalization, Dogecoin remains in the top 10 cryptocurrencies, therefore, most likely, in the near future it will move in the wake of sentiment for major coins, and also be sensitive to Musk’s statements about support for the project, Mazur added.
The last time the CEO of Tesla and SpaceX Elon Musk endorsed Dogecoin on June 28. He reacted favorably to the proposal to update the cryptocurrency network, which states that the average transaction fee on the altcoin blockchain should be reduced by 100 times.
“However, the fragility of the DOGE coin’s fundamentals casts doubt on its stability and sustainability. We do not exclude that in the long term Dogecoin may leave not only the top 10, but also the top 20 cryptocurrencies in terms of capitalization, ”the expert predicted.
“Long-term targets for Dogecoin are at $ 1”
Currently, Dogecoin is an investment attractive cryptocurrency, according to leading analyst at 8848 Invest Viktor Pershikov. He explained that fundamentally, cryptocurrency has room to develop: both technologically, towards cheaper transactions and network scaling, and investment, in terms of increasing capitalization against the backdrop of growing demand for this cryptocurrency.
Pershikov believes that the current Dogecoin is the optimal combination of high capitalization and the “low base” effect, when the asset is relatively cheap, but, at the same time, has a significant number of investors and may well be an element of the “aggressive” part of the investment portfolio.
The expert pointed out the fact that the largest altcoin holders did not sell the asset against the background of the fall from $ 0.75 to $ 0.15. This may indicate the expectation of further growth, said Pershikov.
“I expect Dogecoin to recover to $ 0.45- $ 0.5 in the next few months, with long-term altcoin targets at $ 1. The current prices are optimal for the purchase of this asset with the expectation of a recovery in prices by the end of the year, ”the specialist concluded.
“All the potential growth of Dogecoin depends on the hype”
The power of social impact continues to be the main growth driver for Dogecoin, noted Nikita Zuborev, senior analyst at BestChange.ru.
According to him, while Elon Musk continues to mention the coin with some frequency, it will show high volatility. It is important that the market trend changes to an upward one, then we will be able to see more than one record for Musk’s “favorite cryptocurrency“, the expert warned.
He added that if the market resumes growth, then the altcoin will have a chance. However, in a downside or consolidation environment, Dogecoin is likely to outperform the market. The expert urged to avoid margin trading when buying Dogecoin.
“It is difficult to imagine yet what could influence DOGE in the future. From a technical point of view, the project is useless, as well as from the point of view of security and distribution of assets among wallets.
The project most likely has no future. All potential growth depends only on the influence of media personalities on investors and the “hype” effect, – concluded Zuborev.
