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Dogecoin is known as the father of meme coins. For a long time, people didn’t understand this type of cryptocurrency until the DOGE price shot earlier this year to become of the largest cryptocurrencies in the market.
Since then, the coin has had lower price movements in comparison to its peers. It has been trading lower than its high.
However, there has been increased price action recently and this could be the beginning of a new rally that could get DOGE to new highs.
What is Dogecoin?
Dogecoin is a peer-to-peer currency that was launched in the year 2013. At its peak, DOGE had a market valuation exceeding 80 billion dollars.
DOGE has recently come under competitive pressure as more coins get online. Such competitors include SHIBA INU. These coins are also named after dog names and are targeting the same type of investors.
This competition is so intensive that SHIB recently overtook DOGE in market valuation.
However, despite the recent events, DOGE retains the market leadership advantage and could still propel it to greater heights.
Some of the key factors that could help in propelling DOGE include;
Although DOGE has no cap on the number of total supplies. It has a 5 billion yearly cap. This is critical in ensuring there is no oversupply and helps control the price.
DOGE had an initial launch of 100 billion coins. The capping of coins supply has a direct relationship with its high price. This makes it possible for the coin to grow in the future as long as there is demand.
Elon Musk Influence
Elon Musk is arguably the biggest influencer in the cryptocurrency market. On a deeper dive, he has had a direct influence on the price of DOGECOIN. Almost all its price jumps have something to do with him.
He has made it clear he is also an investor in the coin and is never shy supporting it. DOGE is only a tweet away by Elon from a 100% price jump. Most investors usually take a wait approach for him to make any positive remark.
The price has fallen almost 75% from its high earlier in the year. This makes it the right time to buy low. The current price consolidation is almost getting exhausted and soon we could see another price jump.
As an investor, your task is to identify those assets with a low valuation but a huge potential to grow. DOGE is that asset right now.
Some analysts predict that DOGE prices could get to one dollar in the coming days. Considering this is only 20% higher than its all-time high, it remains a possibility.
A key challenge facing most investors is a lack of patience. High volatility levels in cryptocurrencies have also made it difficult to do risk management.
Other factors such as low levels of regulations and the fact this industry is still new make it harder for investors to master.
However, the market and the coin will grow in the long term and are set to bring millions to those who are patient.