Cryptocurrencies are volatile, and Dogecoin is a meme cryptocurrency. The first cryptocurrency was bitcoin, and Dogecoin came into existence in 2013. Dogecoin is the second bitcoin because it is a meme bitcoin, and many people expect that the Dogecoin price will suddenly increase in the future.
Everyone does not know the fate of cryptocurrency, but still, people are purchasing cryptocurrencies. However, they know that it is uncertain. They can also lose their money in the future if cryptocurrency gets banned. So, in this article, we will discuss the price prediction about Dogecoin.
What influences the price of Dogecoin?
What is Dogecoin
Dogecoin is a cryptocurrency launched in 2013, and there was no purpose in making this coin. It was invested just as fun, but the Dogecoin Jackson Palmer did not know that the Dogecoin would become the famous meme coin.
Yes, Dogecoin is one of the popular meme coins in cryptocurrency, and everyone knows that. If you want to invest and earn money in trading visit Software for further details.
Price history of Dogecoin
The price of Dogecoin was $0.00167 in 2017, increasing to $0.0060 in 2018. In January 2019, the cost of Dogecoin decreased to $0.0018, and it is normal because it is a meme coin. In 2020 the price rose $0.0023, and 2021 was when it went up to its higher stake at $0.33. But we see that the price of Dogecoin has decreased by 5%-10% suddenly.
But what is the reason behind its sudden fall? We have noticed that the costs of all the cryptocurrencies such as bitcoin, Ethereum, WRX, Dogecoin, and other coins suddenly went down, and now these currencies are at the regular price. Still, there are no changes in Dogecoin. Dogecoin is also at a meager price, according to the price history.
To understand why bitcoin prices, go down and are not growing, we have to understand some factors that affect Dogecoin. So, let’s understand the factors that influence the cost of Dogecoin or other cryptocurrencies.
Factors affecting Dogecoin
There are the following factors that are affecting the dogecoin price given below:
Demand and supply
Dogecoin is just a meme coin that becomes famous or popular because people start buying it as fun. No one knows that people will give it more love. So, the first thing that influences the price of Dogecoin is demand and supply.
You know the rule of economics, if the order is high and supply is low, then the price will automatically increase, and if there is insufficient demand and increased supply, then the cost of Dogecoin will fall. So, the demand and supply play a significant role, and it also depends upon people’s choices.
Some people buy it just for fun, and others believe it is for severe trading or investing. People who buy it just for fun are not afraid of losing the coins, and they can anytime buy or sell whether they are in profit or loss. So, it also affects the demand and supply of Dogecoin.
News influence the price of Dogecoin or another cryptocurrency at a higher level. Today’s era is the digital era, and everyone has mobile phones and internet access. Everyone is using social media, and social media news and articles impact our buying and selling decisions.
If the news with the following headline is in trend – “The price of dogecoin will touch $1 next,” definitely people start buying without knowing the absolute truth or research. And if you hear the news that “dogecoin will be banned,” then you will sell all the Dogecoin, and the price will decrease.
The price of bitcoin is increasing because bitcoins are limited in supply. There are 21 million bitcoins in circulation; limited supply means higher prices. But the market capitalization of a dogecoin is $30 billion, and there are 131.68 billion dogecoins in circulation that is too high compared to bitcoin. So higher supply means to lower the price and lower the demand.
New beginners start buying cryptocurrencies without knowing the cryptocurrency technology. And when they suffer loss, they start selling and selling means falling prices. People follow the YouTube ads, article stories that are earning money through Dogecoin or another cryptocurrency trading.
Their exchanges trigger their emotions through ads by showing the earnings, cars, bikes, brands, etc., so that they can use their exchange and start trading. So, when people start blindly following other people without proper research, the price of cryptocurrency is influenced.
Thus, these are why the price of Dogecoin fluctuates, and some news is decreasing the cost in reality. China has prevented its citizens from trading bitcoins or other cryptocurrencies, and the prominent market capitalizations are in China. So, it is also affecting the price of Dogecoin.