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Dogecoin is the fun-loving wingman of the cryptocurrency world, but the past several months have not been fun for Dogecoin investors. Since rallying past the 110 satoshi mark in late September, the Dogecoin price has been in an extended decline. On November 12, the Dogecoin price reached a low of 56 satoshis–a nearly 50% decline in just two months. However, the Dogecoin price reversed course this week.
For most of the week, the Dogecoin price stayed closed to the 58 satoshi mark. However, the price began to rise on November 19, albeit at a slow pace. But the Dogecoin price exploded on November 22 and continued to increase on the 23rd. At press time, the Dogecoin price was 72 satoshis.
Dogecoin now has a market cap of just over $25 million, which ranks the altcoin 5th in the cryptocurrency market cap rankings.
Investors will likely view this Dogecoin price increase one of two ways. Shibes may be tempted to view the bump as the beginning of a long-term price recovery. Indeed, the Dogecoin price has been in decline long enough that it seems a correction was inevitable. However, cynical investors will probably write this increase off as a small-scale pump and dump and steer clear. And though they are jaded, those words bear wisdom. Coins rarely experience significant price bumps this quickly without cooling off. Traders will have to decide which narrative they believe is most accurate and operate accordingly.
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Disclosure: The author is paid in and holds investments in bitcoin. He is not invested in or affiliated with any of the altcoins discussed in this article. Any advice contained in this article is solely the opinion of the author and does not reflect the views of CCN.com. Neither the author nor CCN.com is liable for your investing decisions, so do your homework and never invest more than you are willing to lose.
Images from Dogecoin and Shutterstock.
Last modified: March 4, 2021 4:41 PM