A group of large investors has taken the recent market dip as an opportunity to accumulate $DOGE, in what seems a bold and confident move.
This collective has purchased 750 million Dogecoin, showcasing their belief not just in the coin, but in the overall long-term potential of the cryptocurrency ecosystem. When discussing this recent activity, speculation within the crypto community often veers toward what this means for the future price of Dogecoin—especially in light of the fact that some seem to be betting it will soon reach new all-time highs (ATHs).
Dogecoin’s Price Action Mirrors 2017 Structure
Many people who follow the market are now comparing Dogecoin’s recent price pullback to the behavior of the cryptocurrency back in 2017. What is unmistakable, though, is how closely the price movement of the retracing digital asset appears to be mirroring the previous patterns. And when you consider that same-movement aspect along with the general aspect of another dip retracement, the Dogecoiners among us would have to be feeling like this is all just a setup for the next moonshot.
Initial widespread attention as a meme coin allowed Dogecoin to grab a foothold in the cryptocurrency ecosystem. It now occupies a somewhat prominent position. And that’s not very hard to do, given how shadowy and miasmic a lot of the cryptocurrency world is. So, what is Dogecoin now? It’s not really a serious investment, but it has become a sort of alt-Ivy meme coin. Being a bear, I can’t help but find this amusing—if only because so many friends and family members have lost so much money in the crypto markets.
For those monitoring the market, the recent downturn might be seen as an ideal chance to gather up $DOGE at a cheaper rate before the digital currency possibly rockets again. That follows the lead of prominent supporters like Elon Musk, whose recent reaffirmation of faith in Dogecoin has certainly helped the crypto’s image. And with the current pullback in overall market sentiment appearing to be the result of a couple of near-term developments rather than anything to do with the long-term outlook for blockchain technologies, Dogecoin’s current price dip could well look like a better buying opportunity in retrospect.
Elon Musk’s Influence and the U.S. Treasury on a Blockchain
A further source of excitement for $DOGE holders is confirmation from Elon Musk that he is pursuing the idea of placing the U.S. Treasury on a blockchain. The Tesla CEO, who has been an outspoken supporter of Dogecoin, has sparked renewed possibilities among investors with his vision of the future of digital currencies. If Musk’s plan comes to fruition, the potential for Dogecoin to play a role in the revolutionizing of financial systems could pay off—quite literally—for $DOGE holders.
Placing the U.S. Treasury on a blockchain would drastically change how financial institutions conduct business—bringing, one might say, a “more transparent, secure, and efficient” look to the agency and its work. Yet, my own uncertainties cloud areas of the plan. A blockchain-powered Treasury has no established pathway to reality. If it were to be realized, however, using Dogecoin as the native currency for smart contracts (i.e., “transactions”) within that system could provide the Treasury with benefits over virtually all other options, in terms of both security and efficiency.
Capitalizing on the Dogecoin blockchain for this massive endeavor would almost assuredly enhance the coin’s status as a legitimate player in the burgeoning world of digital finance. If the Dogecoin blockchain is to be an integral part of this push toward an evolving financial landscape, it will have to demonstrate significant utility. Another word for utility, it seems—for a cryptocurrency, anyway, since most are lacking in real, tangible use cases—is demand. To push demand for $DOGE in a serious way would make this use case a big driver toward a higher price and more adoption.
The Future of Dogecoin: A Bright Outlook
Even though Dogecoin started as a meme coin, it has come a long way and seems to have a very solid future ahead. The recent surge in whale activity and Elon Musk’s ongoing endorsement of the asset tend to imply that $DOGE could be on the verge of something bigger. As more institutional players and big-name investors enter the digital currency space, could a massive breakout be on the near horizon for the digital currency?
While the price of Dogecoin has recently experienced a pullback, this could be a strategic buying opportunity for people who believe in its long-term potential. Since 2017, the correlation between what Dogecoin does and how the price of Bitcoin behaves has been strong, and Bitcoin does seem to be poised to hit new ATHs in the not-so-distant future. The question is, will Dogecoin go along for the ride?
Additionally, Musk’s ambitious plans for blockchain and the increasing acknowledgment of Dogecoin as a valid part of the crypto space give plenty of cause to think that the token might have a promising future. Musk’s involvement with Dogecoin is a big part of why many people watch the token closely. Whether or not Dogecoin turns out to be any kind of valuable digital asset or useful medium of exchange, its current role in the emergent cryptocurrency marketplace serves as another chapter in the always-entertaining saga of Elon Musk and his many ventures.
At present, Dogecoin is gaining notoriety that could lead to even further advances, with the backing of influential figures, strong institutional interest, and increasing use cases. If the current crypto pullback is not too severe, a pending $DOGE breakout may present a fresh opportunity to catch the meme coin at a relatively low price. This possibility is one reason why Dogecoin is now commanding the attention of even serious investors.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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