Despite Dogecoin’s DOGE/USD 10% week-over-week drop, a prominent crypto trader sees a bullish chart pattern forebode stronger price performance.
What Happened: Crypto trader Kevin shared his optimistic perspective on Dogecoin, highlighting the meme coin’s resilience compared to other altcoins during a prolonged market slump.
On the weekly chart, he emphasized the importance of Dogecoin maintaining its position above the Macro .382 Fibonacci retracement level and the blue support zone. He suggested that if these levels hold, Dogecoin could continue upward to the golden pocket range of $0.26 to $0.33….Continue reading….
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Critics:
Dogecoin is an altcoin with a large userbase, and is traded against both fiat currencies and other cryptocurrencies on several reputable cryptocurrency exchanges and retail investment platforms. Trading physical, tangible items in exchange for Dogecoin takes place on online communities such as Reddit and Twitter, where users in such circles frequently share cryptocurrency-related information.
Several cases of people using their employers’ or universities’ computers to mine Dogecoin have been discovered. Dogecoin has been used in an attempted property sale, and it has been used in the pornography and gambling industries. One major mainstream commercial application of the cryptocurrency has been Internet-based tipping systems, in which social media users tip other users for providing interesting or noteworthy content.
Dogetipbot was a cryptocurrency transaction service used on popular sites like Reddit and Twitch. It allowed users to send Dogecoins to other users through commands via Reddit comments. In May 2017, Dogetipbot was discontinued and taken offline after its creator declared bankruptcy; this left many Dogetipbot users losing their coins stored in the Dogetipbot system.
Dogecoin’s blockchain cannot interact with smart contracts directly. Dogecoin can be tied to the Ethereum blockchain in order to access some decentralized finance (DeFi) instruments. Dogecoin started with a supply limit of Ð100 billion, which would have been far more coins than the top digital currencies were then allowing.
By mid-2015, the 100 billionth Dogecoin had been mined, with an additional Ð5 billion put into circulation every year thereafter. In February 2014, Palmer announced that the limit would be removed in an effort to create a consistent reduction of its inflation rate over time. Dogecoin’s implementation differs from its predecessors: It was originally forked from Litecoin, then refactored to Bitcoin. Dogecoin’s target block time is 1 minute, as opposed to Litecoin’s 2.5 minutes and Bitcoin’s 10 minutes.
The Dogecoin community and foundation have encouraged fundraising for charities and other notable causes. On January 19, 2014, a fundraiser was established by the Dogecoin community to raise $50,000 for the Jamaican Bobsled Team, which had qualified for, but could not afford to go to, the Sochi Winter Olympics. By the second day, $36,000 worth of Dogecoin was donated and the Dogecoin to Bitcoin exchange rate rose by 50%. The Dogecoin community also raised funds for a second Sochi athlete, Shiva Keshavan.
In 2014, The Dogecoin Foundation, led by Eric Nakagawa, began collecting donations to build a well in the Tana river basin in Kenya for World Water Day (March 22). The campaign, in cooperation with Charity: Water, collected donations from more than 4,000 donors, including one anonymous benefactor who donated 14,000,000 dogecoin (worth approximately $11,000 at the time), raising over US$30,000.
Dogecoin’s origin as a “joke”, which makes it the first meme coin, has made it difficult to be taken seriously by mainstream media and financial experts. The cryptocurrency has had a long and problematic history of scams. Similar to many other cryptocurrencies, Dogecoin has been described by some commentators as a form of Ponzi scheme.
Critics allege that Dogecoin investors who purchased Dogecoins early on, have a large financial incentive to draw others into purchasing more Dogecoins in order to drive the price up, therefore benefitting the early investors financially at the direct expense of later purchasers. This is primarily because Dogecoin does not have a supply cap like other cryptocurrencies such as Bitcoin, which has a capped supply of 21 million coins.
Elon Musk frequently uses his X platform to express his views on Dogecoin, which has led some to claim that his actions amount to market manipulation because the price of Dogecoin frequently experiences price movements shortly after his tweets. Nevertheless, because cryptocurrencies are not regulated like stocks, these actions are not illegal. Musk and his promotion of Dogecoin have been criticized by Dogecoin co-founder Jackson Palmer, who called Musk a “self-absorbed grifter“.
Musk’s first Dogecoin-related tweet occurred on December 20, 2020. Musk tweeted “One Word: Doge”. Shortly after, the value of Dogecoin rose by 20%. This was followed by a series of Dogecoin-related tweets by Musk in early February 2021 captioned “Dogecoin is the people’s crypto” and “no highs, no lows, only Doge”. Following these tweets, the value of Dogecoin rose by roughly 40%.
On April 15, 2021, the price of Dogecoin rose by more than 100% after Musk tweeted an image of Joan Miró‘s Dog Barking at the Moon painting captioned “Doge Barking at the Moon”, a message which was taken by some as a reference to the industry slang term “to the moon”, meaning a hoped-for increase in a cryptocurrency’s value.
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