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Dogecoin started as a joke in 2013. Soon after launch, it developed other use cases, including charities and online tipping. Over the years, the coin performance was inconsequential. However, it started exhibiting massive growth potential in 2020. Within one year, it grew to become the biggest meme coin and effectively ranked among the top ten cryptocurrencies by market capitalizations.
2021 was, without doubt, the best year for dogecoin thus far. It was trading at US$0.007 in January and went on to hit an all-time high of US$0.7381 in May. However, it has lost about 70% of its value and was trading at US$0.1715 at the end of 2021. That notwithstanding, the meme coin has gained massively since the beginning of the year.
Dogecoin followed Bitcoin's bullish run. External factors, especially key opinion leaders (KOL) and influencers contributed significantly to the proliferation of value. For instance, tweets from Elon Musk and Snoop Dog, two of the biggest KOL, impacted the growth of the Doge community. Currently, the crypto coin boasts a massive following from Twitter and Reddit.
So, what is in store for dogecoin? In 2022, it is likely to experience more growth, with institutional adoption and acceptance by retailers. Tesla has mooted accepting DOGE as a payment alternative. Investors like Mark Cuban have invested heavily in Dogecoin, the investor owns Dallas Maverick, which accepts dogecoin for tickets and merchandise. Some of the community members suggest using the meme coins for hot tubs. With increasing user cases, the price of dogecoin is set to skyrocket.
According to DOGE forecasts for 2022 provided by cryptopredictions.com, DOGE will start 2022 trading at US$0.233447. During the first quarter, the forecasted minimum price is 0.198430. The price growth is expected to rise through February, averaging US$0.234112 in the month. Dogecoin is forecasted to close the first quarter at a maximum of US$0.293125.
In the second quarter, the predicted average price in April is US$0.234677. Dogecoin is expected to hit a maximum price of US$0.292728 as per the site predictions. In June, the price will average US$0.234182.
CryptoPredictions' algorithm predicts that Dogecoin will dip a little bit in July, with the expected maximum price falling to US$0.291856. Similarly, the average price will go down to US$0.232411 in August. Finally, the maximum price will drop to US$0.286380 in September.
The price is expected to dip further in the fourth quarter. The site's forecast shows that Dogecoin will trade at a maximum price of US$0.286380 in October and close the year at a maximum price of US$0.279832.However, another site providing dogecoin forecasts – TradingBeasts, is a bit less optimistic and expects in Q4 an average price of US$0.221.
Dogecoin's satirical nature has made it one of the most popular meme coins. Endorsement from Elon Musk and Mark Cuban has only fueled its wide popularity. The coin is used as a means of payment with low transaction costs. Currently, over 1900 merchants accept dogecoin as a means of payment as per Cryptwerk data. Its tipping service is quite a unique use case, making it even more endearing to the Dogecoin community. The service allows users to give quick gifts to other users on Reddit and Twitter.
Despite the above-mentioned use cases, Dogecoin has relatively less utility. Its growth will significantly depend on whether the influential figures will continue to support the meme coin. A tweet from Elon Musk in the new year could spring up the dogecoin price at the beginning of 2022. Other notable supporters like Gene Simmmons will have huge impacts on how the dog-themed coin will behave in 2022.
The dogecoin community will also influence the price of DOGE in 2022. The digital coin currently boasts over 4.5 million total followers on both Reddit and Twitter. In addition, its listing on Etoro had significantly boosted its reach to users.
Like other meme coins, dogecoin growth will largely depend on media attention and hype because they generally lack a strong foundation.
The good news is that Dogecoin Foundation has unveiled a trail map detailing the 2022 project that will enhance its utility. At the top of this plan is to make DOGE useful and boost its adoption through utility. The foundation gives examples of paying rent and buying coffee. Essentially, they plan to make DOGE a universal coin by focusing on payments.
Another development is the Gigawallet project. The API solution will enable developers to add doge transactions on their platforms. Also, DOGE is planning to establish community staking, which will help migrate the coin ecosystem from Proof of Work (POW) to proof of stake (POS).
Here is an interesting development. Elon Musk is set to launch a dogecoin-funded space mission in the first quarter of 2022. With all these developments, Dogecoin will likely resume the uptrend. If it breaks above the current all-time high, the next stop is US$1.
Since touching an all-time high in May, bears have taken control of the market. Currently, the market is oscillating in the zone of recent support. It has also failed to break above a resistance area. In fact, the chart below shows DOGE ranges within this level.
The price needs to break above the US$0.1900 resistance level, which was previously a support level. If it surpasses this zone and probably retests the area, it will be set for a bullish run.
In this chart, Dogecoin shows Fibonacci retests retracement levels. The price touches 31.8% retracement levels and retraces back. If the bullish move resumes, the next stop is $0.24400 at 50% retracement level or US$0.2600 at 61.8% level.
The Dogecoin price has followed a descending channel in the bearish run. However, it has broken above the channel and is retesting the upper channel line, which will act as support. If the price fails to break below this support line, it will resume the bullish run.
According to this technical analysis, the DOGE is likely set for an upward trend. The wait is now on news events that will trigger the bullish run, perhaps a tweet from Elon Musk.
Dogecoin is the pioneer meme coin and boasts a massive following of the enthusiastic community. In 2021, it rose and touched new highs thanks to an endorsement from Mark Cuban, Elon Musk, and Snoop Dog. However, it has shed most of its value towards the end of 2021 and is now trading in an area of interest. It is unlikely that the coin will go any lower. Dogecoin Foundation has lined up new projects which will enhance its utility and eventually boost its value. If the bulls regain market control, we could see DOGE at a new market high that could be as high as US$1. But that will depend on the success of DOGE projects and, to some extent, whether Elon Musk tweets about Doge or not.
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