Several weeks ago, the Dogecoin price was increasing. Regrettably, just after the FTX crash, the Dogecoin price decreased considerably. But how is Dogecoin predicted to perform in the weeks after the crash? Can the DOGE rebound by the end of the year? This article is all about Dogecoin price prediction. Let’s take a look at it in more detail.
What is Dogecoin crypto?
Dogecoin was the first meme token to emerge. Dogecoin was created as a parody of Bitcoin and was only clearly meant for entertainment. Even though, as time progressed, more and more individuals started investing in cryptocurrencies, raising the price and making Dogecoin more well-known. The Shiba Inu dog meme, which functions as the Dogecoin icon, also had an effect.
Dogecoin utilizes the Proof-of-Work consensus algorithm. With Ethereum’s official transformation to a PoS network, ETH mining proficiently ceased to exist. Because Ethereum no longer has a PoW consensus, Dogecoin (DOGE) has overtaken Bitcoin as the second-largest PoW blockchain. As a decentralized payment option for Bitcoin, it has a huge amount of potential.
Dogecoin Price Prediction: How has the Dogecoin price changed in recent weeks?
Dogecoin witnessed a tremendous surge in the last few weeks. Dogecoin climbed from $0.06 to $0.16 in late October and early November. Within a few days, the price had more than doubled. The soar, however, did not last very long. At the time of writing this, the DOGE price is trending at $0.07507.
The DOGE was made to accept higher losses at the start of November. Even so, after dropping to $0.12, the FTX crash lined in, having caused the prices to drop even further. Following more huge losses, the price was capable of stabilizing between 0.08 and 0.09 dollars. The price has since fallen to $ 0.075 in recent days.
Why was Dogecoin able to explode so savagely earlier?— Dogecoin (@dogecoin)
The price explosion at the end of October optimized the Dogecoin prediction for the end of the calendar year substantially. This substantial increase was primarily caused by the rise in the cost of Bitcoin. On the other hand, the Bitcoin price rise happened to coincide with billionaire Elon Musk’s acquisition of the social media platform Twitter.
Elon Musk is a big fan of Dogecoin, and now that he owns Twitter, the DOGE could get even more attention in the future. Furthermore, meme coins such as Dogecoin are known to undergo extremely rapid growth.
What is the outlook for Dogecoin following the FTX crash?
The breakdown of the FTX cryptocurrency exchange has led to a significant decline in cryptocurrency prices in recent weeks. The DOGE was no different. Even so, the Dogecoin price has gone up substantially in worth since the price outburst at the end of October.
However, the price orientation has moved slightly downhill in recent days. After the crash, there was some consolidation. However, a long-term rise is presently highly improbable. Rather, we are seeing sideways mobility, with the price-focused fractionally downwards but not imploding. As a result, the Dogecoin prediction for the end of the year is slightly gloomy.
Where will the Dogecoin price be at the end of 2022?
In our previous prediction, we assumed that the Dogecoin price would rise slightly in the final weeks of the year. However, the FTX crash has forced us to make a much more negative prediction for Dogecoin. Even so, we expect the price to remain stable further in the upcoming days.
In the coming weeks, the price could settle between 0.07 and 0.10 dollars. Furthermore, the end of the year is always a time when the cryptocurrency market may see a minor price increase. As a result, a 10% decrease, as well as a 20-30% rise, are both possible in the upcoming days until the end of the year. As a result, we expect Dogecoin to be worth $0.07 to $0.12 by the end of 2022.
Is it worthwhile to invest in the DOGE right now?
There is currently a little movement in the Dogecoin price. However, there is always the potential for a substantial increase in the Dogecoin price within a few days. However, the marketplace is currently too quiet for such an increase in price to happen. For the next few weeks, the Dogecoin prediction could be rather balanced.
Long-term price increases in Dogecoin could clearly benefit you. A DOGE investment could be beneficial, especially if the total market is optimistic in 2023. An investment in a meme coin, on the other hand, is always inherently risky.
4 bearish factors for Bitcoin this week
The Federal Reserve meeting scheduled on Wednesday may be hawkish for the dollar Bitcoin might give up some of its 2023 gains on a hawkish Fed All eyes are on the Fed’s view on inflation, growth, future interest rates, and quantitative tightening The Federal Reserve’s monetary policy decision is scheduled this week. It is the […]
- The Federal Reserve meeting scheduled on Wednesday may be hawkish for the dollar
- Bitcoin might give up some of its 2023 gains on a hawkish Fed
- All eyes are on the Fed’s view on inflation, growth, future interest rates, and quantitative tightening
The Federal Reserve’s monetary policy decision is scheduled this week. It is the first time the FOMC (Federal Open Market Committee) meets in 2023, and the stakes are high for the US dollar.
Bitcoin has strengthened against the US dollar in January so far, in sync with other fiat currencies. Therefore, whatever the Fed decides on Wednesday will affect Bitcoin price too.
A hawkish Fed may turn up being bearish for Bitcoin. These are the four areas where the Fed may express its hawkishness: inflation outlook, growth outlook, interest rates level, and quantitative tightening.
The Fed is committed to bringing inflation to its 2% target. This is why it has raised rates so aggressively, so if the Fed says that inflation is embedded and upside risks remain, then the US dollar should move higher.
In this scenario, the market will bet that the Fed sees ongoing rate hikes as appropriate.
The currency stance is that a sustained period of below-trend growth is likely. If the Fed changed its view and sees recession required to have a material impact on the inflation outlook, that would also trigger a sharp move higher in the dollar.
Ultimately, it is all about the interest rate level. The funds rate range has reached 4.25%-4.50%, and all eyes are on what the Fed does and says on Wednesday.
The base case scenario is that the Fed will hike by 25bp and says that ongoing interest rate increases are appropriate. Therefore, anything more than that should be bullish for the dollar and bearish for Bitcoin.
For example, the Fed might hike 50bp. This is a risk going into the meeting, especially considering that inflation is not backing down as fast as initially thought.
The Fed currently shrinks the balance sheet at a pace of $95 billion/month. A decision to accelerate the balance sheet reduction would be very hawkish for the dollar.
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