Why is Dogecoin price up 8%? Will DOGE continue to rise? Logical Answer.
Currently, the crypto market is in a consolidation mode. The top cryptocurrencies Bitcoin and Ethereum are both consolidating around $19,000 and $1,300 respectively. However, other cryptos such as XRP and ALGO boomed by 40% and 25% respectively in the past 7 days. It seems like the crypto community is looking at opportunities to buy some undervalued tokens and make big bucks. Dogecoin is one of those cryptos that managed to rise by more than 8% since last week. Why is Dogecoin price up? Will Doge continue to rise? Let’s analyze in this Dogecoin price prediction article.
What is Dogecoin DOGE?
Like Bitcoin or Ethereum, Dogecoin is a cryptocurrency, nevertheless, it is fundamentally distinct from both of these well-known currencies. Dogecoin, which derives its name from a once-famous meme, was first developed at least in part as a humorous prank for cryptocurrency fans.
Dogecoin attained iconic status in early 2021 on Reddit’s WallStreetBets message board—the primary mover behind the GameStop incident in January—where devotees pledged to boost its value “to the moon”. Because of this incident, all crypto discussions were banned on the subreddit.
Why is Dogecoin UP by more than 8% ?
In a previous article, we forecasted DOGE prices till the end of 2022. We saw that DOGE prices were in consolidation between two important prices: $0.055 and $0.075. We also stressed on the importance of buying DOGE whenever prices approached the lower trend line ($0.055) and considering selling whenever DOGE reached the upper trend line ($0.075).
Today, this is exactly what happened, as prices touched the lower trendline, they immediately started pumping higher. DOGE today reached a price of $0.065, which is around the middle of the consolidation zone. Fundamental analysts assume that DOGE whales are on the move, spotting those favorable price actions and opening buy positions. This increases prices significantly but increases the risk of a harsh adjustment at the same time.
Dogecoin Price Prediction – Will DOGE reach 10 cents before 2023?
Given the current sentiment in the crypto market, it is currently unlikely that Dogecoin prices will manage to reach 10 cents before 2023. The reason behind this rationale is that historical crypto prices tend to decrease towards year-end. This is especially true when crypto prices have been bearish for most of the current year. Taking into account how 2022 was, we don’t expect any major price increases till the of the year.
For Dogecoin specifically, will DOGE reach 10 cents before 2023? Well, it would be a big stretch to see DOGE prices reach $0.10. DOGE rose previously from $0.055 to $0.075 within 2 months and a half. Currently, we are witnessing a similar price action, and it would take us more than that to reach 10 cents. To top it off with a bearish crypto market, it would be a stretch to see DOGE have such an increase.
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