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Good boy! Dogecoin (DOGE) shows strong growth amid market crash — will the token go up even more?

Andrew Zhoao

News editor

Feb 1, 2023 at 11:58

Dogecoin (DOGE) rose by 7,27% from $0.08575 to $0.09237 during the last 24 hours. It seems to be no big deal, but considering that almost all other digital assets have fallen by about the same amount in this time, this begs the question, “What is the reason?” We’ll try to answer this and other queries below.

Why didn’t the DOGE go to the bottom?

At the time of writing, Dogecoin is trading at $0.0928, up 7,33% from 24 hours ago and 4,02% from a week earlier. You can see the current success of DOGE more clearly on the charts of the Cryptobubbles platform.

DOGE price Source: Cryptobubbles
DOGE price Source: Cryptobubbles

Reasons for DOGE’s growth were the news that the head of SpaceX, Tesla, and, more recently, Twitter, Elon Musk, plans to implement a payment system supporting cryptocurrencies on Twitter. This is not the first time a businessman has influenced the value of cryptocurrency, as DOGE is his favorite digital asset.

In November, after the news of Musk’s Twitter purchase, the coin rose 38,51% (from $0.07718 to $0.1069). A possible resignation of the businessman from the role of Twitter CEO influenced the coin in December, after which it fell by 10,09% (from $0.07865 to $0.07144).

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How is DOGE trading on exchanges?

The most profitable Dogecoin rates, according to Coingecko, on the following exchanges (DOGE/USD pair):

  • Binance US — $0.093509 (trading volume is $10,090,342).
  • Bitfinex — $0.093521 (trading volume is $2,351,836).
  • — $0.093579 (trading volume is $2,593,309).
  • Gemini — $0.093724 (trading volume is 850,158).
  • Kraken — $0.093739 (trading volume is $15,591,100).

But that value is a far cry from the coin’s all-time high, which came on May 8, 2021. At that time, DOGE could be bought for $0.6878. Compared to the current value, the difference is 86,51%. Then the trigger was Musk’s words that Dogecoin is hustle literally means success, recognition, and prestige.

DOGE trading volume has increased 26.92% over the past seven days (from $171M to $234M). At the time of writing, Dogecoin is the most traded cryptocurrency on the Binance exchange, paired with USDT ($299,213,832 in the last 24 hours — +15.41%).

What had influenced the price before that?

On September 21, 2022, on the eve of the FOMC meeting, the market also collapsed. For example, Bitcoin fell 5,45% in one day, from $19.545 to $18.534 (now down 1,62%, from $23.270 to $22.880). DOGE also fell, but only 0,33% (from $0.05861 to $0.05842). Now the coin, on the contrary, grew.

The year 2022, as well as for all cryptocurrencies, was not very successful for Dogecoin. During this period, the coin fell in price by 58,09% — from $0.1705 to $0.07146. During the first quarter of 2022, the asset barely dropped or rose in value. However, everything changed in May. Here are the most powerful spikes and collapses in asset prices and their causes:

  • In May, after the overall market collapse due to the news of the Luna crash, the coin fell 55,46% (from $0.1358 to $0.05505).
  • The value of the asset recovered only at the end of November. DOGE grew 57,66% (from $0.06034 to $0.1425). The rally is connected with Musk’s deal to buy Twitter.
  • In November, the asset went down again. This time, the reason was the collapse of the FTX exchange, which affected the whole market. Dogecoin then fell from a peak of $0.1425 to $0.07718 (-45,84%).
  • In the same month, rumors of cooperation between Musk and Buterin again became a trigger for the growth of DOGE, raising the value of the asset from $0.07718 to $0.1069 (+27,8%) within a day.
  • In early December, the cryptocurrency began its latest bearish rally, influenced by the news of FTX’s bankruptcy. The value of Dogecoin fell another 31,93% (from $0.1034 to $0.07038) before the end of the year. Which is still higher than the value of the asset after the collapse of Luna. The difference is equal to 21,78%.
DOGE price chart during 2022
DOGE price chart during 2022

What will happen to the DOGE price next?

Based on the volatility of the coin’s value in 2022, we can assume that external factors influenced it the most. Therefore, it makes sense to rely on them and see how the coin behaves. So, in the near future, it is worth paying more attention to the actions of Elon Musk. The businessman has probably already put in another line to change the value of the asset.

“I will eat [sic] a Happy Meal on TV if McDonalds accepts Dogecoin,” he said.

Because of this, the value of the coin rose by 5,89% from $0.08247 to $0.08763 during the day. If the food industry giant accepts DOGE as payment, the cryptocurrency’s value could change.

Crypto Twitter has already presented how the advertising for the collaboration will look.

And here are which companies are already accepting DOGE as payment and how this has affected the value of the asset.

  • Twitch. Since October 21, 2014. The value rose from $0.0005877 to $0.001801 (+67,37%).
  • Spotify. From February 2, 2021. The asset rose from $0.007481 to $0.06965 (+89,26%).
  • Tesla. From January 15, 2022. Dogecoin rose from $0.1434 to $0.1851 (+22,53%).

Despite the fact that DOGE is one of the top 10 cryptocurrencies by market capitalization, the coin has not yet broken through the $1 bar. Therefore, the question remains whether it can overcome this barrier in the near future. And especially if the collaboration with the fast-food chain materializes. We asked Dogecoin expert Sir Doge of the Coin about that.

Will Doge reach $1 this year?

Price fundamentally depends on macro conditions. I’m bullish this year but $1 is a stretch unless the likes of the traditional markets and bitcoin return to their highs. 

Will Mcdonald’s accept Dogecoin as a payment method? What will happen to the price of the coin then?

I hope so. I presume they’re waiting for hype and trust to return to crypto first. It’ll obviously have a massive positive impact on dogecoin. That would be a catalyst that could drive it to $1 for sure.

What are your predictions for Dogecoin? Write about it in the comments.

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