Doge stock burst onto the scene when Elon Musk decided it was the next big thing. Then, all of a sudden, it took off, and there were rocket ship emojis everywhere. People began to see it as a way to get out of debt, pay off school bills, and get rich. Then Elon Musk tweeted again and down went Dogecoin stock. Will it go back up? It’s hard to say with meme stonks. Will people lose interest and move on to the next trend? Will the government decide to regulate it? These are all things to consider if you want to invest in Dogecoin.
Chart by TradingView
No one had heard of Doge stock before Elon Musk jumped. And then it was everywhere you looked. The price went from $0.04 to $0.6894. That’s a pretty big increase. And it was everywhere. I mean everywhere. I’d sign into Facebook and see women posting about their husbands buying it.
I even had a college student ask me if she should put her savings into Dogecoin stock to pay off her student loans. It’s that thinking that’s a little scary. I told her that I would not at this time because it was so over-extended that I’d be worried I was buying at resistance instead of support.
And if you don’t know what support and resistance are or how to find them, you shouldn’t invest in them. After we had that talk, Elon Musk tweeted again. And wouldn’t you know it.?Dogecoin stock went down. That doesn’t mean it won’t rise again and break a dollar. A forecast said it should reach $1 by 2030-2031. So, if you want to wait 9-10 years to reach that dollar level, you can. Could it reach a dollar quicker than that? Absolutely. But with these trendy stocks, it’s hard to say whether they’ll be good long-term or fizzle out. Just look at GameStop.
Dogecoin Endgame
An increasing number of people worldwide have started investing in cryptocurrencies, and the trend has pushed the value of several digital coins to new highs. Dogecoin is the latest digital coin that has been making a buzz lately. Software engineers Billy Marcus and Jackson Palmer created Dogecoin in 2013 while deliberately naming it after a popular meme.
Dogecoin remained dormant for several years. However, it came into the limelight after gaining value earlier this year. Surprisingly, Dogecoin exploded in value last month and became one of the biggest cryptocurrencies in market value.
The digital coin has outperformed all peers, and its market value is currently hovering around $60 billion, bigger than the market cap of numerous long-established companies such as Ford and HP. There’s no Doge stock, so you don’t find it on some larger brokers. Maybe we’ll see that change if it continues to be popular.
Dogecoin ($DOGE) TipRanks Stock Forecast Report 3/24
Doge Stock Hype
Several factors have fueled the value of Dogecoin over the past month. However, Tesla CEO Elon Musk’s optimistic comments were the biggest driver of the cryptocurrency. Musk called Dogecoin his favorite currency.
His tweet “Doge Barking at the Moon” on April 14 sent Dogecoin price up nearly 200 percent in the following three days. He also called it “people’s crypto” earlier this year. Most recently, he asked his Twitter followers whether Tesla should accept Dogecoin.
Musk has a massive following on popular social network platforms. Millions of people follow him on Twitter, and many don’t hesitate to invest their money following his posts.
His tweets about Bitcoin in December made the world’s biggest cryptocurrency rise to new highs. The same thing happens to Dogecoin after his regular tweets, bolstering the support for the coin.
A large number of people around the world have reportedly poured their savings to buy Dogecoin, hoping to get rich quickly. Big retail investors across different online forums use hashtags such as “DogeToTheMoon” to rally the price of Dogecoin.
Many are comparing the latest Dogecoin frenzy to the GameStop rally earlier this year. GameStop shares suddenly skyrocketed more than 1,600 percent in January after a group of small investors on Reddit’s social news platform initiated a campaign urging investors to buy GameStop stock.
Dogecoin traders are using similar tactics to drive the price of the cryptocurrency. They have somewhat succeeded in their efforts. Dogecoin price has skyrocketed more than 9,000 percent so far in 2021. That could lead to a Doge stock if it continues.
Will (Dogecoin) Doge Stock Make Me Rich?
That’s the goal of meme stocks. They’re trendy, and people see it as a way to get some quick money. It’s hard not to think it’ll only go up when a guy like Elon Musk jumps in. Stonks only go up, right? They do until they don’t.
Elon Musk hosted Saturday Night Live, and Doge stock went down. If you’d just bought into the hype, you weren’t feeling so hyped anymore. So, will Dogecoin make you rich? Probably not. And if that’s your reason for trading/buying it, don’t be surprised to see your hopes dashed.
Is Dogecoin a Long-Term Investment?
Dogecoin runs on blockchain technology like the rest of cryptocurrencies. However, it has no lifetime cap, which means miners will keep mining millions of new Dogecoins over time. This makes Dogecoin highly inflationary, with little incentive for investors who want to hold it longer.
The latest gains in Dogecoin may not be sustainable in the long run. Yet, those who bought the coin earlier this year have already made hefty profits. Experts believe Dogecoin will face downward pressure, with 5 billion coins entering the market annually.
Comparatively, Bitcoin has a lifetime cap of 21 million, making it scarce and hard to get over time. The value of Bitcoin is expected to rise due to its finite supply, but its actual trading volume will drop once it reaches its lifetime cap.
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Is It Too Late to Buy Dogecoin?
Investing in any digital coin involves risk. The same thing goes for Dogecoin. Nevertheless, beginners can invest a small amount in cryptocurrency to see how it goes. However, spending heavily on a cryptocurrency that started as a meme won’t be wise.
Dogecoin fans believe the coin will hit the $1 mark very soon. On the other hand, many are calling it a highly risky investment despite Musk’s backing for the coin. So what does that do to Doge stock?
Those looking to buy Dogecoin can make an account on leading crypto exchanges such as Binance. Few online brokers, like Robinhood, also let people buy Dogecoin on top of assets, including stocks and bonds.
Moreover, keeping Dogecoins in a crypto wallet after buying them is best. There are many kinds of wallets, including those offered by exchanges. Buyers can also move them to their mobile devices and even a physical hard drive with a private password.
Doge Stock Latest Developments
Last week, Dogecoin hit a 52-week high price of $0.73. Many were expecting the coin to touch the $1 price mark. But contrary to expectations, it fell back to $0.45. It has been trading lower for the last few days.
Many are linking the latest drop with the recent comments made by Elon Musk on an American comedy show called Saturday Night Live. Many were expecting Musk to endorse the coin further. However, he surprisingly called Dogecoin a hustle during his appearance on the show. Many sold their holdings in the coin, sending its price down more than 25 percent during the last five days. The coin is highly volatile, trading mostly between $0.43 and $0.50 this week.
Final Thoughts: Doge Stock
The cryptocurrency space is full of surprises. No one can make a 100 percent accurate prediction about the future of a coin. Experts have mixed reviews about the future of Dogecoin stock. But only time will tell how this latest frenzy will end. Until then, trade Doge stock smartly.
