Dogecoin price prediction: beware of the DOGE?

Dogecoin price predictions are difficult to make during times of such volatility – with tweets from the likes of Elon Musk and Snoop Dogg sending prices surging

Read our new forecast Dogecoin predictions: can this altcoin really hit $1?

The Dogecoin price prediction carries on being swayed by some high-profile endorsements from A-list stars. Every tweet that a celebrity posts about this joke cryptocurrency is often accompanied by double or triple-digit gains.

Of course, Elon Musk has been one of the instrumental drivers in Dogecoin’s price. He recently declared this altcoin “is the people’s crypto” – and caused a stir after sharing a picture of a famous scene from The Lion King, where Rafiki is holding up Simba. Some clever Photoshopping meant that Musk’s face was superimposed on Rafiki, with a shiba inu pasted over Simba’s.

The Dogecoin price prediction for 2021 could remain bullish – providing that DOGE continues to be a source of infatuation for one of the world’s richest men. Kiss frontman Gene Simmons also got in on the action by revealing that he owned DOGE last week… and over the weekend, Snoop Dogg set Twitter alight after sharing an altered album cover entitled “Snoop Doge”.

Although the rapper didn’t confirm whether he owns any DOGE, or pass any judgment on Dogecoin’s price, his tweet is huge PR for a cryptocurrency that hasn’t had any technical updates whatsoever since 2015. At the time of writing, the A-lister’s post has been retweeted 44,400 times… and liked 212,000 times.

And as you’d expect, Musk wasted little time in bringing together all of the celebrities who have helped fuel positive Dogecoin price predictions – in the most attention-grabbing way that he could think of:

Dogecoin price latest: another trip to record highs

Back in late January 2021, DOGE comfortably broke its previous all-time high, which had stood at a modest $0.018 and had been set three years earlier. In a short space of time, Dogecoin’s price more than quadrupled – nearing $0.08. The latest flurry of excitement on Twitter saw records broken again on Sunday when prices hit $0.08436… helping Dogecoin’s market cap exceed a market cap of $10.7bn. Yes – you’re right, this is absolutely crazy.

It would be exceedingly unwise to make a Dogecoin price forecast given the unprecedented volatility we’re seeing. In a sign of the mania that’s currently gripping the market, DOGE is now among the top 10 cryptocurrencies worldwide in 2021 – overtaking the likes of Stellar, Bitcoin Cash and the USDC stablecoin.

What is Dogecoin?

We’ll return to Dogecoin price predictions in a moment, but first, let’s briefly delve into the history surrounding this altcoin.

As you might expect, it was started as a joke back in December 2013. DOGE was a collaboration between two engineers – Billy Markus from IBM, and Jackson Palmer from Adobe. This asset is even older than Ethereum, and Dogecoin was designed to poke fun at Bitcoin, which back then was about four years old.

Back then, the internet was a hotbed of memes… one of them featuring a shiba inu dog that was affectionately known as Doge. Pictures of an especially photogenic canine were accompanied by brightly coloured text in comic sans that didn’t actually make grammatical sense, like “such doge”, “much meme”, “very internets”, “wow” and “so scare”.

Palmer claims that he hasn’t made a cent from the altcoin’s surge in recent years – and in past interviews, he’s even expressed alarm at its success. Writing for Vice back in 2018, he said:

“Dogecoin’s valuation is the result of market mania that has resulted in inexperienced investors buying up low-priced assets on a whim, hoping that they will follow Bitcoin’s meteoric trajectory.”

Dogecoin’s price tends to be gripped by dizzying highs and crashing lows. A day after the first spike in January 2021, DOGE crashed as low as $0.0228 – wiping more than two-thirds off its value. Investors who bought in will have ended up nursing some nasty losses. The most sensible Dogecoin price prediction suggests that we’ll see a similar pattern as a result of the February 2021 spike… with prices crashing back down to Earth. (Back at the start of 2021, Dogecoin’s price was struggling to break above $0.01.)

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Is Dogecoin a good investment?

So: how much will Dogecoin be worth in 2021? Well, it’s highly likely that Dogecoin’s price might have already hit a high point for this year. All of this depends on whether or not celebrities keep tweeting about it.

The TikTok users among you may also be asking this: will Dogecoin ever reach $1? Last summer, the social network was gripped by a challenge that encouraged people to buy into this memecoin – in the hope that this would help it surge to $1. One video on the platform said:

“Dogecoin is practically worthless. There are 800 million TikTok users. Invest just $25. Once the stock hits $1, you’ll have $10,000. Tell everyone you know.”

Such Dogecoin predictions may seem rather harmless at first, but it’s worth noting that this could be likened to pump and dump behaviour. At the time of this challenge, DOGE would have also had to surge by 43,478 per cent to hit this milestone.

So… has Musk made any Dogecoin price predictions? Why is he so passionate about this altcoin? Well, it might not be worth reading all that much into the billionaire’s tweets. During a discussion on the Clubhouse app, he said:

“Occasionally I make jokes about Dogecoin, but they are really just meant to be jokes.”

Here’s the problem: research shows that his tweets do have the power to move markets. A recent study examined how trading volumes and prices have surged after the Tesla CEO tweeted about cryptocurrencies in 2021. The findings were nothing short of staggering. On each of the six occasions scrutinised by Blockchain Research Lab, there was a spike in activity – especially if his musings were unrelated to what was going on in the markets.

All of this raises concern that, as 2021 continues, Musk could end up causing prices to fall dramatically if he decides to tweet something negative about DOGE.  

Overall, this is a tale of buyer beware. Although DOGE may seem fun – with dizzying surges that seem to be a licence to print money – we’ve seen that prices can go down just as quickly as they go up. And as the old saying goes:

“It takes a mad man to be bitten by the same dog twice.”

Trade DogeCoin to US Dollar - DOGE/USD chart

Dogecoin to US Dollar
Daily change
Low: 0.07687
High: 0.08167

FURTHER READING: Dogecoin rises almost 50 per cent in a day after Elon Musk's tweets

FURTHER READING: The five best cryptocurrencies to invest in winter 2021

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