Dogecoin (DOGE) Price Prediction for 2021: Is the 20 SMA Going to Keep Pushing Doge Down?
DOGE/USD – Forecast Summary
|DOGE/USD Forecast: H4 2021|
Price: $0.40 – $0.50
Price drivers: War on cryptos, Doge coin sentiment, Technicals
|DOGE/USD Forecast: 1 Year|
Price: $0.70 – $0.80
Price drivers: Increased adoption, Cryptocurrency market sentiment,
|DOGE/USD Forecast: 3 Years|
Price: $1.50 – $2.50
Price drivers: New Developments from DOGE, Crypto market
Dogecoin (DOGE) is a peer-to-peer, open-source cryptocurrency created by software engineers Billy Markus and Jackson Palmer in December 2013. This token surged in price during April, as it shot to $a0.76 from $0.07, which means gaining around 1,000in two weeks. Since then, Dogecoin was looking really bearish, as it slipped to $0.15 by July 2021 after the crash in the crypto market in May and the bearish momentum which followed. The meme coins were missing the bullish reversal in the crypto market until the second week of August, which was disappointing for buyers, but it started turning bullish eventually and it has doubled in price by the middle of August, so the bearish period seems to be over for Dogecoin. Elon Musk’s comments and Mark Cuban’s incentives for Mavericks fans to pay with Dogecoin are also helping this crypto on this bullish reversal.
This coin is considered an altcoin and an almost sarcastic meme coin. Dogecoin features the face of the Shiba Inu dog from the “Doge” meme as its logo. Since it was designed apparently as a joke, its blockchain still has value. It should be noted that Dogecoin’s underlying technology is derived from Litecoin. Well-known and major features of Dogecoin, which uses a script algorithm, are its low price and unlimited supply. However, it is a mineable coin that is currently trading around $0.30 and has a market capitalization of $39.238B, which puts it in the seventh position in the global Cryptocurrency Rating. On the supply front, the currently available supply of Dogecoin is 130.45B coins.
We are presenting the full Dogecoin price prediction and forecast that offers a better perception into the current DOGE market situation, future expectations regarding the price movement, and Dogecoin market capitalization. This will help us to understand what’s going on in the Crypto Market currently so that we can adjust the trading strategy accordingly, which makes planned investment and trading decisions in the future, although at the moment it seems risky to invest in Doge coin right now, since the crypto market is in a bearish period, which now one really know how long it will last.
Recent Changes in the DOGE/USD Price
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Dogecoin (DOGE) Price Prediction for the Next 5 Years
The previous year (2020) was seen as beneficial for cryptocurrencies. Even as the rest of the economy declined, most cryptocurrencies’ prices rose or maintained their prices within the range. But the situation turned even more bullish in 2021. The first four and a half months were immensely bullish for cryptocurrencies, with many of them gaining 10 to 20 times in value. Doge coin was also extremely bullish but faced enormous price volatility during this year, the same as any other cryptocurrency. It climbed approximately 7400% from the beginning of the year when it was trading just below $0.01, until early May when it briefly moved above $0.74. The Dogecoin cryptocurrency market cap peaked at $95.370B in May, but after the reversal of the last two months, the market cap has declined to $22.356B.
At this particular time, the price of Dogecoin is trading at $0.30, with the crypto market being in an uptrend now, after trading on a downtrend from May until early August for Dogecoin. The traders realize that the establishment can’t kill this market, even with the central bank cryptocurrencies, which are on the way. Crypto investors are getting used to the crackdown, so we are seeing the trend shift to bullish in this market and buyers got their confidence back after the bearish period from mid-May until August.
As we are all well aware, the Dogecoin started a joke, or rather to satirize the proliferating dubious crypto coins. Despite these factors, its growth has not been a joke. ‘At this moment, it ranks eighth across the globe. Recent support from high-profile individuals has influenced the “joke” cryptocurrency. Besides this, the reason behind its bullish bias earlier in 2021, can be mainly attributed to Elon Musk’s series of tweets. Gene Simmons reported that he owns DOGE, which was also seen as one of the key factors that supported it. Apart from this, Snoop Dogg (American rapper) posted an altered album, named Snoop Doge. If the celebrities continue this passion for Dogecoin, then its price will pick up again, when the sentiment improves in the crypto market. There is no reliable way to see the future price of cryptocurrencies exactly. But our analysts use mathematical algorithms to forecast the future price of cryptocurrencies for both short-term and long-term investments.
Price Prediction for 3rd Quarter 2021 – The bullish momentum of the first several months of this year waned and the crypto market was on a decline for two months. Central banks across the globe have been increasing the bar for cryptocurrencies in 2021, with China leading the way. The central bank of China (PBOC) is now calling for the shutdown of companies that “are suspected of providing software services for virtual currency transactions.” So, even the tech companies selling software are getting prosecuted there, while other central banks and financial authorities are taking action and advising banks and financial institutions to avoid certain cryptos or crypto exchanges, such as Binance which is the largest one and is under attack in UK and Japan at the moment. The crypto war is escalating, but Dogecoin is reversing higher, after the whole market turned bullish a couple of weeks prior. So, we predict that Dogecoin will continue higher until the end of Q3, probably climbing to $0.40-45.
Price Prediction for 4th Quarter 2021:
Cryptocurrency users, traders and investors will realize at some point that this market will survive the hostility. The central banks might be able to make it difficult for some centralized cryptocurrencies, but other countries are inviting them with El Salvador making Bitcoin legal tender. Other countries such as Malta, Peru, Singapore, Switzerland etc are increasing the crypto adoption and are very friendly for cryptocurrencies. Despite that, the crypto market is becoming increasingly decentralized, which means that it will be increasingly difficult to crack down on them. Will the shift happen before the end of the year? No one knows, but it is certain that cryptos will reverse at some point and if that happens during Q4 than great.
Price Prediction for 2022 – If the crypto crackdown easies or comes to an end by the end of 2021, or if the establishment fails to put down this market once and for all, which is sort of impossible and traders realize that, then cryptocurrencies will turn bullish and Doge will increase. Although, it depends where the bottom will be before the reversal, in order to judge where Doge coin might be throughout 2022. But, chances are increasing that 2022 will be a good year for cryptos and we think that at some point Doge will target the May highs at $0.74.
Price Prediction for 2023 and 2024 – The generally bullish sentiment regarding cryptocurrencies will keep pushing the Dogecoin prices up by this time. In simple words, more investors are expected to continue buying DOGE, which will push prices higher more. According to our forecast, Dogecoin will probably start the 2023 year around $0.70-0.80 maximum price. Where it will exactly be, no one knows, but this period will be bullish for cryptocurrencies and Doge will increase above $1 most likely.
Technical Analysis – Bearish Correction in Play, Brace to Capture Buying
Doge coin started showing bullish signs in January this year, when the increase started, although the first three months were pretty slow, compared to the rest of the crypto market, which was surging. In April though, the surge caught up with Doge as well, as it increased nearly 10 times in value, jumping from $0.05 to $0.45. April eventually closed at $0.34, but in the first half of May the surge continued higher, taking DOGE/USD above $0.74. The reversal came that month as well, forming a massive doji candlestick which is a bearish signal after the bullish trend, and eventually, the decline followed in the next two months. The price pierced the 20 SMA (gray) in July, but pulled back up, forming a hammer candlestick in July, which is a bullish reversing signal after the decline. August looks bullish already, so it seems like Dogecoin is resuming the bullish trend again.
DOGE/USD- Monthly Time-frame – Bearish Correction
On the weekly chart below, the 20 SMA acted as support for some time, with the price making a major bounce off of it in April. That moving average provided some form of support during the retreat in June, but was broken and Dogecoin fell to the 50 SMA (yellow). The 50 SMA was pierced but eventually, the price pulled back up above it and reversed toward the end of July. Now, Dogecoin is in the process of moving above the 20 SMA on the weekly chart and resuming the larger bullish trend.
DOGE/USD – Weekly Time-frame – The 50 SMA stands as support
On the daily chart the bearish trend of the previous few months is more clear. After the surge in April when the 20 SMA (gray) was acting as support, came the reversal down in May. DOGE/USD broke the 50 SMA (yellow) and this moving average, together with the 20 SMA turned into resistance. The 200 SMA (purple) held the decline in June and we saw a bounce, but the 20 SMA kept pushing the price down. The 200 SMA held as support and the price eventually reversed higher. The 20 and the 50 SMAs were broken, but now DOGE/USD is trying to break the 100 SMA (green) on this chart. Once this moving average is broken, the road is clear to the upside. So, the daily chart looks bullish as well for Dogecoin, once the 100 SMA is gets broken.
The 20 SMA continues to keep Doge bearish