The movement of Dogecoin depends on market sentiment. When the market corrected over the news of the FTX liquidity crisis, Dogecoin did not lose its value like many other leading cryptocurrencies. Moreover, it recovered from the lower level sooner than other cryptos. It suggests positive momentum, at least for the short term.
DOGE is a leading meme coin in the crypto world backed by Tesla CEO Elon Musk. He regarded it as the ‘People’s Currency,’ which attracted media attention in the last two years. After that, many crypto enthusiasts joined the DOGE community.
However, is it a good choice for long-term investment? The drawback is Dogecoin does not have a mixed coin circulation, which means DOGE price will not depend on the demand and supply.
It only moves with the market sentiment and news. Besides that, many experts prefer to choose cryptocurrencies based on their real-life use cases, but Dogecoin does not have such use cases, which does not qualify it as a digital asset for the long term.
Many traders prefer Dogecoin for the short term because it is very volatile and can provide decent returns even within a few hours. If you are an active trader, you can invest in DOGE; otherwise, find other assets for long-term investment.
At the time of writing this post, DOGE was trading around $0.085, which is in the lower Bollinger Bands. Most technical indicators are neutral, suggesting a consolidation for the next few days, but based on our DOGE forecast, we think it is a good time to invest for the short term.
However, on the weekly chart of Dogecoin, candlesticks are in the upper BB, which suggests bullish momentum. Though we do not suggest long-term investment in DOGE due to its poor fundamentals, you can invest now with a short-term target.