While Dogecoin faced a tumultuous week, its price has climbed considerably in the past days and reached the $0.23 support floor.
As per Coindesk, Dogecoin rose 2.91 percent on Thursday, reaching $0.2468. It’s awesome sign of great things to come for the meme cryptocurrency, though it seems the general pullback is far from done. FX Street anticipates DOGE could retest a demand zone at $0.213 before sailing back towards an uptrend.
Dogecoin Price May Rise 30% If It Maintains Bullish Trend Above $0.23
But it seems all these signs point to a jump to $0.308, FX Street added. Assuming it will rise from current prices, DOGE will face resistance barriers of $0.256 and $0.268, opening up to a retest of $0.308. A rise in buying pressure would push DOGE to that $0.308 level, which shows a climb of 30 percent.
Dogecoin, FX Street stressed, could even go beyond the next resistance level at $0.328.
However, if DOGE would slide below the $0.23 support level, it would lead to mounting selling pressure. As such, Dogecoin could even go to the $0.213 demand level while a further fall to $0.193 will annul any bullish sentiment.
Despite this, is it still wise to invest in Dogecoin?
Its incredible, meteoric rise the past year can give investors hope. The Motley Fool stated that investors should look beyond the fear, uncertainty and doubt or what is called in the crypto world as FUD that comes with Dogecoin. Instead, they consider how investing in the meme coin could bring huge returns.
A good reason to keep the faith in Dogecoin is how Tesla CEO Elon Musk and fellow billionaire businessman Mark Cuban see the meme coin as the “strongest” cryptocurrency as a medium of exchange. Cuban’s NBA team, the Dallas Mavericks, now accept Dogecoin as a payment option to purchase tickets and merchandise. This was unthinkable three years ago, with only 154 merchants accepting Dogecoin as payment. Now, there are 1,662 merchants open for DOGE payments, with 70 percent of these businesses located outside the U.S.
Reason to Invest in Dogecoin: Best Ecosystem for Users, Miners, Participants, Environment
Though Bitcoin might have wider acceptance, adoption is not the only reason why people should invest in Dogecoin.
Environmental concerns is another factor. With Musk canceling Bitcoin payments due to the use of fossil fuels in powering equipment for transactions, he has been mainly supportive of Dogecoin since its transactions consume less than 0.01697 percent of what it takes transmit Bitcoin between addresses. The Motley Fool noted. Cryptography used in Dogecoin, the report stated, needs less computing power to validate transactions.
DOGE likewise has enormous supply, with 5 billion new coins minted each year adding to its current supply of 131.1 billion. Because of this, it guarantees miners ample rewards as they validate transactions. This is achieved by having net capital inflow exceed inflationary benchmark for Dogecoin to appreciate.
As such, investors would definitely be delighted with how Dogecoin maintains a friendly ecosystem to participants, miners, users, and the environment, a good sign of further meteoric growth. Add to that Dogecoin’s soon to be implemented new protocol upgrades, such as smart contract functionality, that will ensure better security and reduced transaction fees.
Before investing, though, it should be noted that cryptocurrency is a highly volatile market. It is a risky option and interested people should only invest the money they can afford to lose.
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