- Dogecoin has been the most popular Altcoin since its inception.
- It has recently touched a high of US$0.64 on 8 May 2021, and investors started speculating new heights for it.
- Being a popular cryptocurrency, its inherent volatility is worth considering.
Dogecoin supporters are wondering what heights it will reach in 2021? This cryptocurrency is an all-time favourite among small investors. Started in 2010, it is gaining a reputation as a high-profit cryptocurrency now, much thanks to Elon Musk. The market cap is around US$42 Billion and currently trades around US$0.31-0.32.
On Sunday, Elon Musk tweeted that Tesla will resume allowing bitcoin transactions upon miners using more clean energy. This has caused a price surge of around 10%. Even Etherium and Litecoin have risen around 5%. Since Dogecoin is based on another cryptocurrency, Luckycoin, which is based on Litecoin, even Dogecoin prices surged. Another reason is that the Dogecoin community is vivacious. Yesterday, technical analyst Eric Thies tweeted that he could see a hidden bullish divergence on DOGE one-week chart. He has more than 39K followers on Twitter, and this certainly was one of the reasons for Dogecoin reaching US$0.33.
Is Dogecoin that popular?
Although launched as a meme currency, its speedy growth has made it one of the best cryptos on investors’ watchlist. Many cryptocurrency researchers believe in its potential. It has also never lost popularity since its launch with an ever-increasing customer base. It has been a hot favourite twitter topic for Elon Musk (SpaceX CEO) and famous rap artist Snoop dog. Even TikTok trends on Dogecoin have been quite popular.
When will Dogecoin Reach US$5?
In May, there was a lot of discussion on Dogecoin reaching a US$5 level. The coin is predicted to reach the US$1 mark by the end of 2021. The growth in the past six months has been more than 3000%, from US$0.01 to US$0.32 on 15 June 2021. It reached the US$0.72 level on 8 May 2021. At the current growth rate, it is possible to touch the US$5 mark in future. Though, a lot depends upon market dynamics.
The crypto markets have been very volatile recently. A lot of discussions have been going for making it a legal tender. El Salvador recently became the first country to allow this. The cryptocurrencies space is still naïve and very prone to influencers. Ergo no one can tell how stable the returns are and what levels it can take an investor to.