Can Dogecoin Shoot to the Moon in 2022?

Image source: Getty Images

Maybe the ‘big dog’ of all meme coins, Dogecoin (CRYPTO: DOGE) It is still one of the hottest cryptocurrencies that investors are watching right now. Much of that interest has to do with running the amazing parabola in the past year with this symbol.

Dogecoin has gone from a fraction of a penny to as high as $0.74, providing one of the biggest moves of the past year. Now, investors looking for bets on the moon are assessing whether this is possible again in 2022.

It’s a new year, with a whole new set of possibilities. Will Dogecoin be launched on the Moon or Earth Shatter? Let’s discuss.

Dog: No shortage of excitement yet

A cryptocurrency that started as a joke, Dogecoin has grown into something of an enterprise. The community that follows this coin has become enormous. Investors of all ranges have been envious of those who had the nerve to hold on to this symbol through the volatility of the past.

Indeed, it is the excitement around Dogecoin and the community that supports this token that is often attributed to its success. In the mania-led hyper-highs, investments that tend to outperform are often driven by a loyal and loyal investor base. So far, this has mostly been true for Dogecoin.

There were certainly reasons for this excitement last year. Popular CEO Elon Musk has not been shy about tweeting in favor of Dogecoin. Advertisement Tesla This prepaid cipher will accept an accelerator for that token already. in addition to, AMC It announced that it would accept Dogecoin as payment, and a host of other applications built on the Dogecoin network began to appear.

The way ahead for DOGE in 2022

Now, it is worth noting that many of the above catalysts are likely to be overpriced at the moment. Even Dogecoin bulls agree that more catalysts are needed to make a major breakthrough in 2022.

This is not to say that there is not a lot of news flowing on Dogecoin – quite the contrary, in fact.

However, Dogecoin is an inflationary token. A rally to the $1 mark or higher in 2022 will put this token well above the more established block chains. In addition to various catalysts such as increased adoption, more decentralized finance applications, and a thriving ecosystem in development, this network will likely need to accelerate the token burning process and become a developer friendly network. It is unclear if that will happen.

minimum

The value of Dogecoin largely depends on market sentiment and investors’ willingness to take risks. If market conditions turn bearish, this is not a token to own.

However, in the rising crypto market, investors have seen the returns that a token like Dogecoin can provide. While this token certainly doesn’t fit my risk profile, others may disagree. this is good.

You’ve given up on predicting whether the tokens will go to the moon or crash. Some would say Dogecoin has already “mooned”, and any rise from here is a bonus. fair enough.

However, this will be a token that I will be watching closely this year.