The cost of Elon Musk’s favourite cryptocurrency Dogecoin is 66% below the all-time high. Experts explained why an asset can return to peak values and in which case its quotes will continue to fall
On Monday, June 28, the Dogecoin price on the Binance crypto exchange rose by 5%, to the current level of $ 0.25. The altcoin price is recovering after falling to a local low of $ 0.16 on June 22. Although the cryptocurrency has risen in price by almost 56% over the past week, it remains 66% below the all-time high of $ 0.73, set in early May.
“In the long term, Dogecoin may leave the top 20 cryptocurrencies”
It is difficult enough to call the Dogecoin project something serious because the popularity is primarily Elon Musk’s tweets, notes the head of the data analysis department of CEX.IO Broker Yuri Mazur. According to him, the fall in altcoin’s value occurred after the billionaire stopped aggressively supporting him.
In terms of market capitalization, Dogecoin remains in the top 10 cryptocurrencies. Therefore, most likely, it will move in the wake of sentiment for major coins and respond to Musk’s statement about support for the project, Mazur added.
The last time the CEO of Tesla and SpaceX endorsed Dogecoin on June 28. He reacted favourably to the proposal to update the cryptocurrency network, stating that the average transaction fee on the altcoin blockchain should be reduced by 100 times.
“However, the fragility of the DOGE coin’s fundamentals casts doubt on its stability and sustainability. We do not exclude that in the long term, Dogecoin may leave not only the top 10, but also the top 20 cryptocurrencies in terms of capitalization, ”the expert predicted.
“Long-term targets for Dogecoin are at $ 1”
Currently, Dogecoin is an investment attractive cryptocurrency, according to a leading analyst at 8848 Invest Viktor Pershikov. He explained that fundamentally, cryptocurrency has room to develop: both technologically, towards cheaper transactions and network scaling, and investment, in terms of increasing capitalization against the backdrop of growing demand for this cryptocurrency.
Pershikov believes that the current Dogecoin is the optimal combination of high capitalization and the “low base” effect when it is relatively cheap. At the same time, it has many agents and may well be an element of the “aggressive” part of the investment portfolio. The expert did not point out that the largest altcoin holders did not sell the asset against the background of the fall from $ 0.75 to $ 0.15. This may indicate the expectation of further growth.
“I expect Dogecoin to recover to $ 0.45- $ 0.5 in the next few months, with long-term altcoin targets at $ 1. Current prices are optimal for buying this asset with expectations of a price recovery by the end of the year.” , – concluded the specialist.
“All the potential growth depends on the hype”
The Power of Social Impact continues to be the main growth driver for Dogecoin, chief executive senior analyst at BestChange.ru Nikita Zuborev According to him, while Elon Musk continues to mention the coin with some frequency. Then we will be able to see more than one record for Musk’s “favourite cryptocurrency”, the expert warned.
The Expert Advisor made a purchase of margin trading with Dogecoin. He added that if the market resumes growth, then the altcoin will have a chance. However, in a downside or consolidation environment, Dogecoin is likely to outperform the market.
“It is difficult to imagine yet what could influence DOGE in the future. From a technical point of view, the project is useless and from the point of view of security and distribution of assets among wallets. The project most likely has no future. All potential growth depends only on the influence of media personalities on the factors and the “hype” effect, – concluded Zuborev.
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