The meme-inspired dogecoin (DOGE) cryptocurrency remains the talk of the crypto markets, having plunged to $0.22 on 19 May, after soaring by more than 15,000% from the start of the year to an all-time high of $0.74 on 8 May. The coin recovered some of its losses, reaching $0.43 by 3 June, only to continue falling. At the time of writing, 17 June, DOGE traded at $0.31.
The coin’s volatility is often driven by social media, especially tweets by Tesla (TSLA) CEO Elon Musk.
There have been calls for DOGE to reach $1 by the end of the year. Is that price target still viable? This dogecoin price analysis looks at the cryptocurrency’s recent performance and the latest price predictions.
Social media drives dogecoin volatility
The DOGE cryptocurrency was not intended to be a serious investment asset when it started off as a joke. The coin launched in 2013 as a parody of the explosion in cryptocurrency altcoins that were promoted as alternatives to bitcoin (BTC). Software engineers Billy Markus from IBM (IBM) and Jackson Palmer from Adobe (ADBE) adopted the popular Doge meme, featuring a shiba ina dog for fun.
The co-founders had ceased being directly involved in the Dogecoin project, but its resurgent popularity has encouraged them to return to the project and develop an upgrade to the protocol – which was last updated in 2019 – that they intend to roll out in the next year.
While the protocol was launched for fun, it has found applications in transferring small amounts of money quickly with low trading fees. Social media users can tip content creators with dogecoin from a secure wallet while protecting their privacy.
DOGE is an especially volatile cryptocurrency, with users on TikTok and Reddit often attempting to collectively drive up the price.
Musk has posted a series of tweets in recent months talking up Dogecoin, and he has been joined more recently by billionaire entrepreneur Marc Cuban and brands such as Snickers chocolate and Slim Jim beef jerky.
The number of companies accepting dogecoin as payment has been increasing. In March, the Dallas Mavericks NBA team, high-end car dealership Post Oak Motor Cars, luxury resort company the Kessler Collection and Latvian airline airBaltic added DOGE to their accepted payments methods. And cryptocurrency ATM operator CoinFlip added dogecoin to its network of 1,800 terminals across the US.
On 19 April, technology-focused online retailer Newegg announced that it was marking #DogeDay by starting to accept Dogecoin as a payment method. Newegg has accepted payments in bitcoin since 2014. Customers can complete their transactions by transferring dogecoin held in their BitPay digital wallet.
On 20 April, the hashtags Doge420 and DogeDay trended on Twitter, as social media users anticipated a jump in the price towards $1.
The owner of the Dallas Mavericks basketball team Mark Cuban has also made several comments about the coin. On 26 April, he posted that “DOGE is the one coin that people actually use for transactions”.
Cuban also noted that his NBA team was on track to complete 6,000 dogecoin transactions in April.
Dogecoin plunges in another crypto crash
Dogecoin has had an especially volatile price history. It had a value of just $0.000264 when it became available in December 2013. It was relatively stable until the cryptocurrency rally in late 2017 into January 2018 lifted the price to $0.013219. By the summer of 2018, it had fallen back to $0.002169, and in early 2019, it slipped to the $0.001 level. The price trended up during 2020 as cryptocurrency adoption increased, ending the year at $0.004644.
But it was the rally in crypto prices in January and February that took prices to record highs, including dogecoin, which reached $0.079696.
Dogecoin fell in late February to $0.04503. It traded around the $0.05 level until April, when it skyrocketed to $0.34, dipped to $0.28 and then hit a new high of $0.44 on 16 April. The coin then slid lower to $0.25 on 23 April.
On 28 April, Elon Musk tweeted: “The Dogefather SNL May 8”, a reference to his tweets about the cryptocurrency (which he said were “just meant to be jokes”) and his TV hosting gig on Saturday Night Live on 8 May.
That was the turning point for the dogecoin price, as traders took heed of the adage “buy the rumour, sell the news”. The price had run up in the days leading up to Musk’s SNL appearance, but sold off during the show.
By 8 May, DOGE had soared to a new all-time high of $0.74. At the time, that made dogecoin the fourth-largest cryptocurrency by market capitalisation, behind bitcoin, ether (ETH) and binance coin (BNB).
The coin has since been caught up in the broader cryptocurrency market selloff, which was prompted in part by Musk tweeting that Tesla is no longer accepting bitcoin as payment. He has since posted several tweets boosting dogecoin that have driven short-term spikes in the price, but it has remained under pressure.
DOGE was trading in a wide range of $0.22-$0.68 on 19 May, and fluctuated between $0.30-$0.37 on 24 May. On 10 June, the coin was worth $0.33, making dogecoin the sixth-largest crypto by market cap, with a value of around $43.6bn.
After plunging to $0.31 on 8 June, DOGE, along with BTC, ETH and other altcoins, had shortly recovered some of its losses driven by news from El Salvador that BTC would be officially recognised as legal tender. The coin peaked at $0.34 on 9 June and then continued to slide lower. At the time of writing, 17 June, DOGE was trading at $0.31
So, will the cryptocurrency continue to grow in popularity and rebound from the latest selloff? What do the latest dogecoin predictions indicate about the direction of the price for the remainder of 2021 and in the coming years?
Dogecoin price prediction: where next for the memecoin?
Perhaps unusually for such a controversial cryptocurrency, technical sentiment on dogecoin was neutral as of 17 June. There were 16 technical analysis indicators giving bullish signals, while 15 indicators were bearish. There is short-term support around $0.30 with the first level of resistance at $0.317.
Algorithm-based forecasting service Wallet Investor predicts dogecoin will trade up from $0.30 at the start of July to $0.38 by the end of 2021. It suggests the price will rise to $0.57 by the end of 2022 and reach $0.76 by the end of 2023. The coin is predicted to hit $1 in April 2025.
Digitalcoin has also revised its predictions for dogecoin’s future value, expecting the price to average $0.46 in 2021, compared with an earlier forecast of $0.73. Its longer-term forecast puts the price at an average of $0.56 in 2022, $0.91 in 2025 and $1.43 in 2028.
![DOGE price predictions for 2021-2028]](files/imgs/articles/750xx/-infographics-DOGE-forecast-new-4_2.png "DOGE price predictions for 2021-2028]")
The dogecoin price prediction from cryptocurrency aggregator CoinSwitch is bearish, forecasting that in a year from now the price will fall to $0.01 and in five years will trade at $0.04, losing 87% of its current price level.
Eddie Ghabour, managing partner at Key Advisors Group, told Yahoo Finance Live that he views dogecoin as a speculative play that “will probably cease to exist” when the bubble bursts.
FAQ
How to add Dogecoin to your portfolio in 2021
If you are looking for how to invest in dogecoin, you can buy the coin on the cryptocurrency exchanges like Coinbase (COIN), Binance or Kraken, and store it in a digital wallet. Alternatively, if you are not interested in long-term investment commitments but still want to try to profit from the cryptocurrency’s volatility, you can trade DOGE with (CFDs) at Capital.com.
CFDs allow you to open a long position if you expect the DOGE price to rise or go short if you expect it to fall.
Trade DogeCoin to US Dollar - DOGE/USD CFD
As a leveraged product, CFDs are designed to maximise gains, which can be large on volatile products such as cryptocurrencies. However, you should be aware of the high risk involved as CFD trading also magnifies losses if the asset price moves against your position.
Read more about DOGE CFD trading in our comprehensive guide and follow our news coverage for the latest dogecoin review. Create an account at Capital.com and track the DOGE to USD rate in real-time with our live chart to spot the best trading opportunities.
