The former ‘joke’ cryptocurrency Dogecoin has moved far from its original intentions and become the 24th largest crypto project in the world with over $246 million in market capitalization. However, the crypto winter has taken a toll on the currency in the past year. Its all-time highs of $0.017 reached in January 2018, the currency has retracted to $0.002.
More recently, the price of Dogecoin has been moving from $0.002 to $0.0023, showing sideways movement in the coin at the moment, with strong bearish signs.
What Does the Price Movement Mean?
If the general price trends from January 2018 are noticed, there is no saving DOGE for some time. It is expected to continue living in a bearish market for a few more months. According to some estimates, the price could drop down to $0.00134 by the end of February.
By June 2019, the price is expected to reach $0.000415. The currency is expected to maintain the status quo and trade sideways at this price until the end of the year, where it may experience some increase, given other factors remain the same.
Is Dogecoin a Bad Investment?
Dogecoin is one of the most well-known coins in the market, and its transaction volume has increased steadily over time. On January 21, 2019, it processed 28.03387k transactions, and the daily transaction volume went up to $406.2 million. That suggests a little less than an $80 million boost in transaction volume in just 30 days.
For other popular cryptocurrencies, times have been relatively tough. Only Ripple’s XRP has shown a stable transaction volume in the past month. Both Bitcoin and Ethereum have experienced a drop in daily transaction volumes. Other crypto projects like ADA and TRX experienced a relatively sharp downturn in volumes in 2019.
This goes on to show that despite falling prices, Dogecoin is performing better than other established cryptocurrencies in terms of daily volume of transactions- building a strong use case for a P2P transaction cryptocurrency.
According to the price analysis, DOGE doesn’t appear to be a bad currency to invest in- in the long-term context between 1 year and 5 years. In the short term, it is not expected to reap any rewards for the holders. Buying it through the continued stress which is expected at prices could help in adding significant returns on investments.
However, those who want to use the P2P network for sending and receiving payments will continue to find value in DOGE, regardless of the upcoming price movements expected.
Is It a Good Time to Buy or Sell Dogecoin?
If you are investing with a 1-year turnaround in mind, now could be a good time to invest in the coin. If you want quick profits within the next 1 to 3 months, Dogecoin may not be too helpful. Instead of selling your DOGE, hold on to it for real returns. The solid performance and its growing acceptance as a P2P transfer system are expected to help the coin when the bull markets return.