Dogecoin price prediction 2022: Can the cryptocurrency reach $1?
DOGECOIN started as a "joke" cryptocurrency but interest in the coin has grown ever since it launched.
It's recently seen a hike thanks to Elon Musk and his investment in social media platform Twitter.
The meme cryptocurrency jumped by over 20% just in the last few days after the announcement that the site will be purchased by the Tesla CEO.
But why has that happened and what does it mean for the cryptocurrency's value in future? We explain.
Just remember that buying cryptocurrencies is always a risky business, and you should only invest what you can afford to lose.
They are extremely volatile, and your cash can fall as well as rise in the blink of an eye.
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Newer coins such as Dogecoin are even more volatile than other cryptocurrencies.
It's important to only invest in things you understand, and some products and cryptocurrency services can be very complex.
Before investing you should do your research as cryptocurrency firms aren't regulated like other financial companies.
This means that you won't have any protection if things go wrong and you could lose all of your money.
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What's the Dogecoin price?
Dogecoin's price is $0.1489 at the time of writing, up 6.4% in the past 24 hours, according to CoinMarketCap.
It also hit a high of $0.1677 in the past day.
Tesla chief executive officer Elon Musk is the man yet again behind the price movement of Dogecoin.
In the past he tweeted that Tesla merchandise could be bought with Dogecoin.
"Tesla will make some merch buyable with Doge & see how it goes," the billionaire had said.
The social buzz caused the value of the currency to spike slightly at the time but this time it's taken the entrepreneur to buy the company outright to cause rise once more.
While Dogecoin has soared in recent days, the price is down when compared to the highs it reached earlier this year, when token soared to $0.70.
The surge came after celebrities including Mr Musk and Snoop Dogg publicly backed the coin.
However, he's also had a negative effect on the value, as Mr Musk's appearance on Saturday Night Live in May last year sent Dogecoin's value plunging.
Dogecoin's price was over $0.70 on the Saturday of the show, but shortly after Musk's mention of the cryptocurrency, the price fell to $0.47.
It then went on to fall to lows of $0.25.
Ever since then, Dogecoin has been extremely volatile.
Dogecoin was first launched back in 2013 and has the image of a Shiba Inu dog as its logo.
The image became a popular internet meme called doge, and it features the dog surrounded by text in the comic sans font with words like "much wow".
Software engineers Jackson Palmer and Billy Markus originally created Dogecoin as a joke based on this meme.
It has been marketed as the "fun" version of bitcoin but has gained in value and attracted more serious interest since then.
Today Dogecoin is known as a meme coin, which typically gains off a social media or an internet-based joke rather than fundamentals of the coin itself.
Dogecoin price predictions for 2022
It's almost impossible to predict whether Dogecoin's price will fall or rise this year as cryptocurrencies are so volatile.
The market is unpredictable as it affected by a number of factors, including regulatory crackdowns and comments by high-profile individuals such as Elon Musk.
Sarah Coles, a personal finance analyst at investment firm Hargreaves Lansdown, previously told The Sun: "Forecasting what’s going to happen next to meme coins is like predicting what’s likely to set off the next tantrum in a room full of toddlers.
"Because it has no underlying value, it’s not generally used for transactions, and is a terrible store of value, the price is driven by highly unpredictable sentiment.
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"So while people may point to patterns in the past and make guesses as to whether they will happen again, in reality, it’s impossible to say with any degree of certainty.
"As with those toddlers, any one of them could kick off at any time."
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