Many crypto investors, including Dogecoin holders, are worried about the performance of their coins after the general bearish turn in the crypto market. This sparked questions about whether Dogecoin is dead, which has developed into a major topic of debate.
Although the value of Dogecoin has dropped tremendously in 2022, it is not fair to say that Dogecoin is dead. In 2022, the price of Dogecoin dropped significantly with a downward trend of up to -46%. In this article, we will look at the causes of the Dogecoin crash and see if Dogecoin has a good chance to recover in the future.
Why is Dogecoin Falling?
2022 was a tough time for the crypto markets, and was also one of the toughest years ever for the crypto industry. There are a few factors that could explain the Dogecoin crash.
Factors related to cryptocurrencies
Like many other notable cryptocurrencies in the industry, Dogecoin also returned its gains after the series of highly publicized implosions that negatively affected the industry. From the horrific Luna crash to multiple instances of major crypto firms like FTX and Celsius failing and filing for bankruptcy, the crypto market has struggled to hold on to its value over the past few months.
This has caused significant damage to crypto investors’ wallets, and Dogecoin holders have not been spared from the carnage in the crypto market either.
In addition to the noticeable fallout that has occurred in the crypto space recently, the crypto industry has also been affected by macroeconomic turmoil. Perhaps the most notable factor is the rise in interest rates, which is due to central banks’ attempts to rein in inflation.
In 2022, back-to-back interest rate hikes by the US Federal Reserve had a major impact on crypto markets. When interest rates are high, investors tend to be less inclined to park their money in risky assets like cryptocurrencies and instead opt for safer alternatives…
Historical Dogecoin Market Performance: Is DOGE Dead?
Dogecoin may have started as a joke for many cryptocurrency enthusiasts, but the impression changed and adoptions skyrocketed as the coin became a center of attraction for many investors. The play became particularly famous after receiving significant support from the highly influential billionaire entrepreneur Elon Musk.
Launched in December 2013, Dogecoin introduced the concept of the meme coin as it was initially a joke poking fun at the rampant speculation in the cryptocurrency markets. Off to a good start, the coin began to gain adoption a few years after launch as it began to attract interest from retail and institutional investors. In 2017, the price of DOGE saw an impressive increase of 4,009% from $0.000223 to $0.009164.
In addition, Dogecoin also saw a bullish rally in 2021 following a strong social media push that was heavily influenced by the world’s richest man, Elon Musk. At present, predictions about whether Dogecoin will reach $1 have become a major point of discussion among cryptocurrency investors. With the price of Dogecoin rising around 3,000% in 2021, the token reached an all-time high of $0.738 in the second quarter of the year.
Although the price of Dogecoin took a big hit in 2022, DOGE still has an impressive market cap of $11.7 billion as of this writing. Therefore, we can definitely say that DOGE is not dead. In fact, DOGE has outperformed most other coins in the top 100 cryptocurrencies of 2022 (including Bitcoin and Ethereum), showing its relative strength compared to the rest of the crypto market.
Does dogecoin have a future?
Dogecoin has shown impressive resilience, making it likely that it will continue to have a future and play an important role in the cryptocurrency market. Dogecoin is one of the most popular cryptocurrencies and is almost immune to controversy thanks to its meme status in the crypto community. In other words, people don’t expect much from Dogecoin, which is exactly why it tends to lag and even outperform the rest of the markets in bearish times.
The resurgence of Dogecoin in 2021 has led to renewed interest in DOGE, and there are even plans to improve the Dogecoin protocol to make DOGE a more useful digital currency. In fact, Elon Musk said he was in contact with Dogecoin developers to discuss ways to make Dogecoin a more efficient means of payment.
Works with Doge developers to improve efficiency of system transactions. Potentially promising.
— Elon Musk (@elonmusk) 13 May 2021
While it is hard to say whether DOGE will experience another massive rally like it did in 2017 and 2021, it is likely that Dogecoin will stick around for a long time. DOGE is readily available on many crypto exchanges and simple to use, making it appealing to crypto newcomers and seasoned crypto investors alike.
What will the price of Dogecoin be at the end of 2022?
Considering all the decisive indications from Dogecoin price technical analysis for the rest of the year, the value of Dogecoin is expected to see a small increase by the end of 2022. The price of the coin is expected to increase by 2.74% and reach $0.094444 by December 19, 2022. This data was technically analyzed and predicted by CoinCodex.
What is the Dogecoin price prediction for 2023?
After critical observation of Dogecoin prices in previous years, there are speculations that the minimum Dogecoin price will be around $0.129987 in 2023. Meanwhile, the maximum Dogecoin price is expected to reach around $0.159984 by the end of 2023 . Therefore, the average trading price of Dogecoin during the year is expected to be $0.139986.
After the Dogecoin price announcement on December 14, 2022, the value of Dogecoin is expected to decrease by 1.86% and reach $0.090209 at the beginning of 2023, specifically on January 13. There have been technical indications that the sentiment at the time of writing is neutral, while the fear and greed index is showing 30 (fear).
The analysis also reveals that Dogecoin recorded 13/30 (43%) green days with a price volatility of 9.35% over the past 30 days.
So is Dogecoin dead in 2022?
Some crypto experts predict that Dogecoin’s popularity will gain momentum and the coin will continue to succeed amid all the market’s problems, others say that the lack of use cases will lead to DOGE’s demise.
It seems that many crypto users have continued to doubt Dogecoin’s fate despite the online community’s bullish stance on the coin. Therefore, it is correct to say that the question “Is Dogecoin Dead?has stuck in the minds of crypto enthusiasts, especially Dogecoin holders. Some investors even wonder if crypto as a whole is dead.
It is important to note that there are possible chances that the meme coin can overtake major cryptocurrencies in the industry, given its unique design and historical performance. Meanwhile, Dogecoin is definitely not dead as it can be deduced from all observations that DOGE has survived several crypto bear markets so far. However, Dogecoin will have plenty of competition in the next bull market as the meme coin industry is quickly becoming crowded. Will Dogecoin remain the largest meme currency on the market or will another meme currency explode instead?
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