Dogecoin (DOGE) was trading at a one-month high over the weekend, gaining around 22% on 7 August after declining in the first week of the month.
The meme coin had been searching for direction in recent weeks, with a lack of fundamental news to drive the price. The market for dogecoin is heavily influenced by sentiment on social media, and comments from Tesla (TSLA) chief executive officer Elon Musk, who has spoken out in favour of its adoption and development.
So, what’s been moving the price and what is dogecoin worth? In this article, we look at the coin’s recent performance and the latest dogecoin predictions.
Dogecoin searches for bottom after May collapse
DOGE, the coin launched as a satire on the cryptocurrency space, has taken off this year as it’s gained popularity on social media. It reached an all-time doge to USD high of $0.74 on 8 May, a gain of 15,653% from the start of this year. It quickly fell on a “sell the news” response to Elon Musk appearing in Saturday Night Live, when he referred to the cryptocurrency as a “hustle”, having talked it up in previous weeks.
The dogecoin price continued to fall as the broader cryptocurrency markets sold off, sliding to $0.25 on 23 May. It traded up to $0.44 on 2 June but was unable to hold the gains and dropped back to $0.16 on 22 June. The coin rebounded to $0.29 on 25 June but then declined over the next month, returning to the $0.16 level on 20 July.
The price range tightened heading into August, with dogecoin trading between $0.19 and $0.21 until it broke out on 7 August to $0.25.
Cryptocurrency markets bottomed out on 20 July, rising in part on a short squeeze on bitcoin (BTC) and bullish sentiment after comments made by the likes of Twitter (TWTR) and Square (SQ) co-founder Jack Dorsey and ARK Invest founder Cathie Wood, as well as Elon Musk, in a panel discussion at The B Word conference, which considered how institutions can adopt cryptocurrency.
Addressing the future of dogecoin, Musk reiterated an idea he had previously raised of upgrading dogecoin to increase transaction rates and reduce costs. "There may be some merit in combining something like ethereum and dogecoin," he said. Musk holds the ether cryptocurrency as well as dogecoin and bitcoin.
Ethereum co-founder Vitalik Buterin agrees that there is potential for the Dogecoin and Ethereum blockchains to interoperate.
Buterin said in a podcast in early June: “I think if we could have a secure Doge to Ethereum bridge, then that would be amazing, and then when Ethereum gets its scalability thing that works for Ethereum assets you would be able to also trade wrapped doge with extremely low transaction fees and very high speed as well.”
On 25 July, Musk gave dogecoin another boost, tweeting a meme promoting dogecoin as a currency rather than just a form of investment.
Charles Hoskinson, a co-founder of Ethereum and founder of the Cardano cryptocurrency, said on a podcast on 16 June that “it would be a lot of fun” to work with dogecoin.
Dogecoin is based on the Litecoin blockchain, which is a fork – or split – from Bitcoin.
Hoskinson added: "My hope is that a compromise can be made where real developers come in and they start working on doge and they find a way to create some use and utility for it so at least it has a value floor and it won't collapse."
But he sounded a note of caution on the price of dogecoin: “There’s predatory distribution of the underlying asset.
What is the outlook for the future value of dogecoin after the recent moves?
Dogecoin price prediction: what’s next for the coin?
The latest technical dogecoin price analysis from CoinCodex is positive, with 27 indicators giving off bullish signals and five bearish. The daily simple and exponential moving averages from the three-day out to the 200-day were giving buy signals, with the exception of the 100-day simple moving average, which was indicating sell.
At the time of writing (9 August), there was support for dogecoin at $0.22 down to $0.18, with resistance up at $0.26 to $0.31.
The short-term dogecoin (doge/USD) forecast from algorithm-based prediction site Wallet Investor has the price trading between $0.21 and $0.27 in the next two weeks, then remaining within that range on average for the rest of the year. For the longer term, it forecasts that the price will climb to $0.50 by the end of 2022 and exceed $1 in December 2024, reaching $1.40 in May 2026.
The dogecoin forecast from DigitalCoin puts the price at an average of $0.36 in 2021 and $0.44 in 2022. Over the longer term, the site predicts the price will average $0.71 in 2025 and dip from $0.86 in 2026 to $0.85 in 2027, then exceed $1 to average $1.11 in 2028.
How to invest in dogecoin with Capital.com
If you are looking to invest in dogecoin, you can buy it via cryptocurrency exchanges, like Coinbase, Binance and Kraken. You can store coins in a secure digital wallet. Alternatively, you can trade DOGE using contracts for difference (CFDs) on Capital.com.
CFDs allow you to speculate on short-term price direction without having to own the actual coin. Trading CFDs offers the opportunity to try to benefit from both bullish and bearish price action. You can either open a long position, if you expect the DOGE price to rise, or a short position, if you expect it to fall.
Trade DogeCoin to US Dollar - DOGE/USD CFD
As a leveraged product, CFDs are designed to maximise gains, which can be large on volatile products such as cryptocurrencies. However, leveraging can also magnify losses, if the asset price moves against your position.
Make sure you understand how CFDs work before you begin, and never invest money you cannot afford to lose. Learn more about CFDs with our comprehensive guide. Open an account with Capital.com to start trading CFDs on dogecoin and other popular cryptocurrencies.
* Note that CFD trading on cryptocurrencies is currently not available in the UK under FCA regulations.
Edited by Valerie Medleva
Whether dogecoin is a good investment for you depends on your personal circumstances. Cryptocurrencies are highly volatile, high-risk assets. You should evaluate the level of risk you are prepared to accept before investing, and you should never invest money that you cannot afford to lose.
If the dogecoin price breaks through resistance, some forecasts predict the cryptocurrency could trade higher in the coming months. Of course, forecasts can be wrong. It’s vital you conduct your own research. Price movement will depend on sentiment across the cryptocurrency markets, as it has tended to follow the trend in recent weeks.
Forecasts predict that dogecoin could potentially reach $1 in the future, with Wallet Investor suggesting it will hit the milestone at the end of 2024 and DigitalCoin predicting it will take until 2028.