Dogecoin DOGE/USD has fallen more than 20% in the past 24 hours alone and is flirting with the $0.15 level. Compare that to the value it had on May 8 when it tested the $0.75 level and we can see DOGE is down 78% from its highs.
However, when you compare it to the value it had at the start of 2021 at $0.005, it is still up big for the year. With that said, should you buy DOGE now? Let’s take a look and see.
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DOGE price rally: easy come, easy go
On May 7, Dogecoin lost more than a third of its price after Elon Musk called it a “hustle” throughout his guest-host appearance on the “Saturday Night Live” comedy sketch TV show. This showcased exactly how much influence he has over the Dogecoin cryptocurrency.
His influence to push DOGE in either direction was reiterated just days later. On May 13, Elon Musk tweeted that he is working with Dogecoin developers to improve the system transaction efficiency. This contributed to a rebound in DOGE price from $0.40 to $0.50 in a single day. With this announcement, the case can be made that DOGE price in part reacts to fundamental developments and not Tweets about funny memes.
Dogecoin may even benefit from an actual use case. Musk’s SpaceX rocket company said it is going to launch the “DOGE-1” Lunar mission in the first quarter of 2022, which will definitely put Dogecoin on the map of investors again — although this may be a catalyst for next year.
Should you buy Dogecoin now?
Let’s face it, this is a meme cryptocurrency that is heavily influenced by billionaire influencers, and it is making fun of the entire cryptocurrency industry. Its spike in value cannot really be predicted due to the fact that it relies heavily on social media attention and journalism headlines.
However, despite this, it has gotten a lot of value throughout the year, and if we look at the table, it has had quite the roller coaster ride in terms of value. Influencers such as Glauber Contessoto have become millionaires through DOGE, where he invested over $250,000 in dogecoin on Feb. 5, when it was priced at about 4.5 cents. So, as an investment, it can and has generated potentially life-changing returns.
But the opposite certainly holds true and it would be a disservice not to remind investors that investing in Dogecoin can be a gamble.
One thing is for sure, traders love Dogecoin, the media loves reporting on it and individual people with little to no cryptocurrency knowledge love talking about it. Despite the crashing price, it will unlikely become a “thing of the past” anytime soon.
As such, the cryptocurrency has the potential to, at one point in time in the future, rise up again in value. As we have seen in the past, a mere 100 character Tweet is enough of a catalyst to send DOGE price higher.
Even at $0.16 in the eyes of many, it might be a good value buy, given the fact that at one point in time it was at $0.73 and was headed towards the $1 mark. Believers in the coin will support it no matter what, so jumping in on the bandwagon while it is low might be an excellent idea, assuming you want to sell it the next time it spikes back up in value again.
Again, Dogecoin started 2021 at $0.005, making it 3200% more valuable today despite the crash it is currently experiencing.
With its future developments, the developers are prioritizing security, and this could boost its popularity, and by default its price. Again, be sure to only invest what you can afford to lose.
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