Stability of Dogecoin explained. Will it crash or drop even further ?

 

Cryptocurrency seems to have taken its toll in persuading people’s minds to invest in it. Dogecoin has been there world’s favorite cryptocurrency in recent months, with wold rises in its prices.

Although, small drops continue (including fairly sharply in the last few hours) prices are starting to look a little more stable now, and are still high compared to the period before April this year. The question is what can we expect from Dogecoin in the near future?

Dogecoin rose to an all-time high of $0.74 in the first week of May (the dogecoin price in India was INR 54,06 at the time) but it has been dipping over the last two weeks. The market crash has affected other cryptocurrencies too, for instance, the Bitcoin price in India dropped to INR 25, 34,271 earlier this week, compared to a high of INR 48,79,220 for Bitcoin in April. The dogecoin valuation also dropped around 50 percent hitting the bottom on May 23 at INR 21. Since then it has trended up a little and at the time of writing is just under INR 24.

The big question now on every investor’s mind is whether Dogecoin has stabilized? Dogecoin had gained 2.74% in value from 24 hours ago and was trading at $0.34 internationally at the time of writing this report. After hitting the May 23 low, the Coindesk chart for Dogecoin is relatively linear, suggesting it has not shown big volatility since then, except for one peak on May 25.

Whether the stability is shown by Dogecoin over the past few days will last is very difficult to say, but its value has reached where it was before the Bull Run started in April. Tech Billionaire Elon Musk is widely credited for fuelling the wild run of Dogecoin through his tweets. The Tesla and SpaceX CEO began tweeting about it in February when the meme currency was relatively unknown and everyone’s attention was focussed on Bitcoin, the World’s largest cryptocurrency.

 

Soon, Dogecoin surges by 50%. And Musk has continued to rally investors behind Dogecoin since then, one saying he was in talks with the developers of the digital asset to improve “system transaction efficiency“.

And after the crash last week, however, many investors have accused Musk of manipulating the cryptocurrency market with his social media commentary. Some currency bulls even formed a group to ‘stop Elon’ from tweeting on the subject The group has accused Musk of “trying to pump crypto for ages, tweeting about it to no end, and even going on Saturday Night Live as a last resort to get Dogecoin up! It’s ridiculous!”

Musk has said that he supports cryptocurrencies and they have the potential to become the future currency of the Earth. But for now, smart investors should remember that many of the cryptocurrencies that dropped in value during the 2018 crash never recovered past their all-time highs, and so “buying the dip” isn’t necessarily a winning strategy.

 

M0

Drummer| NLP Practitioner| Tech Blogger| RPG Gamer| Public Speaker| Metalhead| Cinephile| Audiophile| Otaku| Techie| Gym Freak

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