Can Dogecoin Really Reach $1 in 2021? Where Is The Limit?
Dogecoin started as a joke which never really ended – the crypto token is based on the ‘Doge meme’, has no real application and has a source code that is (largely) copied from Bitcoin.
The Reddit community under the subreddit ‘r/Dogecoin’ capitulated the cryptocurrency to fame in December 2013.
It is only fitting that the same subreddit community coupled with the subreddits ‘r/WallStreetBets’, ‘r/CryptoCurrency’ and ‘r/SatoshiStreetBets’ have brought Dogecoin into the limelight once again.
The crypto coin’s value is on the rise – can it reach $1 in 2021? Read on!
The reasons behind Dogecoin’s rise in price
While Elon Musk’s tweets on the 18th of July 2020 and the 20th of December 2020, led to a substantial rise in Dogecoin’s price on both occasions (and early January 2021), the mentioned subreddits have been the real reason behind Dogecoin’s huge price surge.
From being valued at $0.007474 on the 28th of January to reaching a high of $0.051 on the 29th of January, Reddit’s GameStop short squeeze protagonists are at it again.
Its market cap has increased more than four-fold since the 28th and is currently $4.2 billion.
Of course, buying the cryptocurrency in large quantities will lead to an increase in its demand. That said, Dogecoin’s recent surge is more a play of enthusiasm than real-life value.
Conclusion - should I invest in Dogecoin?
Investing in stocks like GameStop, AMC Entertainment, Blockbuster and Blackberry still makes sense – while Wall Street will face the wrath of young traders playing with the system, Wall Street will (eventually) find a way back.
Moreover, these companies have REAL value. Investing in Dogecoin makes no sense at all.
As mentioned before, cryptocurrency has no real-life value or application. Traders will look to bolster the value of the crypto token and hold their positions until they reach the proclaimed goal of $1.
The cryptocurrency’s value is likely to decrease drastically once that goal is met.
If you want to invest in Dogecoin during this apparent ‘bullish’ run, play your cards wisely.
Follow the mentioned subreddits, track Dogecoin’s activity, and invest when the cryptocurrency is on the rise.
Refrain from investing in the long-term as the cryptocurrency is highly unlikely to reach the $1 mark and may fall any minute.