Dogecoin Price Down 2.11% – Time to Buy DOGE?


Over the past week, Dogecoin’s price has grown remarkably, making investors troop to buy DOGE. Naturally, the positive sentiment returning to the crypto market is rubbing off on the coin. This article explores the recent price movements of Dogecoin and why investors should consider buying the asset.

Dogecoin: From A Joke To Leading Cryptocurrency

dogecoin price charts August 12 -buy doge

Within a short time period, Dogecoin has moved from obscurity to become the 7th largest cryptocurrency by market cap. The asset has been the rave of the year thanks to a strong community of well-wishers and supporters constantly pushing it on social media.

Dogecoin is based on the popular “Doge” Internet meme and features a Shiba Inu on its logo. It is a decentralized, open-source, peer-to-peer network that uses a proof-of-work consensus algorithm.

The Dogecoin network uses a technology known as the Scrypt algorithm that is different from the technology used by other blockchains like Bitcoin and Ethereum.

The network requires miners to validate and approve transactions as well as secure the network from bad entities who seek to manipulate the blockchain’s record of transactions.

Although it was launched in 2013 by Jackson Palmer and Billy Markus, Dogecoin didn’t blow up until 2021. The constant push of Dogecoin on social media by an undying legion of fans saw Dogecoin rise through the ranks of top digital assets in no time.

By May 2021, Dogecoin was already rubbing shoulders with the likes of Bitcoin, Ethereum, and Binance Coin. The coin has also seen support from high profile investors like Tesla chief executive Elon Musk and Mark Cuban, owner of the Dallas Mavericks basketball team.

DOGE Struggling To Maintain Bullish Trend

DOGE’s price has gone through different bearish and bullish phases this year. The token started the year trading at $0.011427, before hitting an all-time high of $0.7376 in May. However, the crypto crash plunged its price to $0.508 in the following week.

By the end of June, it was trading at $0.191, but this changed in July. DOGE started the month at $0.2445 but eventually hit its low on July 20 at $0.1708 – a 36 percent drop from its starting point for the month.

Dogecoin has a healthy market price, and this might be a great time to buy DOGE. The asset currently trades at $0.2645, down 2.11% in the past 24 hours. This current price trajectory shows that the bears are in full swing, but DOGE is attempting to wade them off and welcome back the bull.

DOGE Technical and Fundamental Analysis

Dogecoin is currently looking good on the trading chart. Its technicals are healthy, with the asset posting a relative strength index (RSI) of 64.25. This range is not an anomaly for large-cap crypto-like Dogecoin.

The DOGE price is trading above its 20-day moving average (MA) of $0.2681. This means that the asset is on its way to an uptrend. As long as the positive market sentiment remains, nothing can stop the influx to buy DOGE, and its price will continue to jump.

Dogecoin is gaining on the fundamentals front. Developers of the blockchain are working on reducing transaction fees on the network. The proposal to reduce the fees was first announced by Dogecoin developer Ross Nicoll in June.

The plan advocates for the revision of the default fee rate to 0.01 DOGE. Currently, the average Dogecoin transaction fee stands at 2.35 DOGE or ($0.672), according to BitInfoCharts.

In a recent tweet, Billy Markus, the creator of the dog-themed cryptocurrency, said the planned upgrade for Dogecoin could be delayed. Markus, who is known by his Twitter username Shibetoshi Nakamoto, said that adoption of the upgrade will not happen immediately but will happen soon.

Michi Lumin, a Dogecoin core developer, said that the developers had planned to release the update on Sunday, but they have decided to add one more solution for fee rounding.

The proposal for fee reduction has the support of Elon Musk, who reiterated his stance in a tweet after the announcement was made. This is not surprising as Musk had previously disclosed that he was working with Dogecoin developers to “improve system transaction efficiency” of the cryptocurrency.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.

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