Why Dogecoin might be a good investment
Dogecoin (DOGE/USD) has continued to trade below the $0.19 short-term resistance since the crypto market crash at the beginning of December.
On December 4, the price fell from $0.2 to $0.12 before having a bullish rejection back to $0.17. This crash was influenced by China’s decisions against cryptocurrency transactions, regarding them as illegal.
The market crash had doge trade at $0.12, which is the lowest price it has traded at since April 2021.
Elon Musk’s Announcement
Elon Musk, on December 14, indicated that Tesla would accept dogecoin as payment for some of its products. Though he did not mention the particular merchandise that this addition will affect.
The news hit the doge market with some bull drive making Dogecoin surge more than 20% to $0.21 before it fell back to around $0.19. His reason for saying this is, dogecoin has a lower transaction cost compared to bitcoin, thus making it better suited for transactions than bitcoin. In his words,
‘Bitcoin is not a good substitute for transactional currency.’
Is it worth investing in dogecoin?
The meme-based virtual currency has shown enough potential to see it as a good asset to invest in. In early 2021, dogecoin soared more than 800% to another all-time high at $0.73. This phenomenon is so much to say about a coin seen as having no potential.
Dogecoin has, against many odds, become popular, gaining attention from investors and big companies. It says a lot about the possible future of the coin.
Suppose doge breaks the $0.19 resistance zone. Many investors will expect it to stay within the $0.2 price consolidation, while active traders might be looking forward to making a quick profit from its small market moves in the consolidation.