Dogecoin is an open-source cryptocurrency that was started in 2013 by Jackson Palmer and Billy Markus. Dogecoin was created as a “joke” by these two software engineers in a bid to make fun of the wild speculation of cryptocurrencies at the time. This is partly the reason why it is considered to be the first “meme coin”. Dogecoin was launched at an initial price of $0.0005588.
Currently, the market cap for Dogecoin is $18.13billion while the average daily transaction is over $1billion. One of the biggest investors of DogeCoin is Elon Musk. Dogecoin had little volatility since 2014 and it stayed below the resistance of 0.0188. In January 2021, there was a breakout to the upside and the price continued to rally for about 5 months till it reached its all-time high in May 2021 at 0.7612. Ever since this all-time high was attained, the price of Dogecoin has continued to fall. The support level for the year 2022 sits at 0.1097.
RSI shows that price has been overbought on the daily timeframe. Just recently, as a result of the takeover of Twitter by Tesla’s boss and richest man in the world, Elon Musk, the price of Dogecoin rallied mainly due to the fact that Elon holds a substantial amount of Dogecoin. The previous rallies of Dogecoin in the past have been attributed to Elon’s tweet and there have been speculations that Twitter might integrate Dogecoin as one of the acceptable currencies for transactions.
Dogecoin rallied by 20% on Monday, 25th of April, 2022 as a result of the Twitter buyout. But this spike was short-lived as the price dipped to 0.1366. Our analysts don’t see the price of Dogecoin appreciating soon because Bitcoin as the “King of Cryptos” has a way of influencing other cryptocurrencies. Bitcoin has failed to rally in recent times and has not been able to break the $50,000 psychological level to the upside as the bears have been more dominant.
Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get crypto-currencies in your portfolio? Schedule a meeting with us here.