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Dogecoin has been showing signs of a bullish trend lately. Although it is not yet 100% clear, early signs indicate a coin that could break out soon. If you are a keen follower of price action, you should be familiar with the higher highs and higher lows bullish trend characteristics.
The dogecoin chart indicates an asset that seems to have already hit the low. The support zone is valid and possibly the price can’t get any lower. This leaves the coin in only one direction, going up.
Since June, Dogecoin has tested the $0.20 area thrice. This is a confirmation of a valid support zone. Hence, we can assume a possible breakthrough move could originate from here.
What is Dogecoin?
Doge is a peer-to-peer transactional cryptocurrency that came online in December 2013. It was largely unknown until it made some huge market moves earlier this year. This happened during the great cryptocurrency bullish trend that saw the total crypto market exceed $2 trillion.
Dogecoin belongs to a group of coins known as fun coins. These are coins initially created for no greater utility other than comic reasons. They are usually low valued and mainly take up dog names.
However, they are now some of the most valuable crypto assets in the market with DOGE having a market cap of 35 Billion dollars.
Will Dogecoin get to $1?
This question never goes away in doge circles. Some analysts believe DOGE is destined to get to the $1 eventually. However, its realization remains a dream to date. There have been various explanations though as to why this is so.
Lack of utilities
To gain more market attraction, cryptocurrencies are creating more value through adding new utilities and efficiency. Some of these include improvement in transaction speeds, affordability, driving decentralized finance, and creation of Non-Fungible Tokens.
DOGE remains slow in adapting and creating these solutions in comparison to its peers. This has made it noncompetitive hence affecting its price growth.
Despite these actions, you could argue that DOGE’s previous price actions almost hit the $1 mark. At its peak DOGE was trading at almost $0.70. some investors argue that utilities do not count in determining a crypto’s value but market sentiments do.
The crypto market remains highly volatile and mostly never follows the traditional investment cycles. Hence, those in favor argue DOGE needs the right influence and market signals to hit the $1 easily.
The current price action indicates a coin that is forming a bullish trend in the lower time frames. In the last few days, Doge has made dome breakout moves to the upside. However, these were temporary and the price came down thereafter.