Since yesterday, the crypto market has been deep in the red. Most altcoins are down by over 15%. In such a market, the last crypto you would be expect to be holding its value is Dogecoin (DOGE). But interestingly, it is pretty much the only major crypto performing well today. Dogecoin is still above $0.005 and is only down by less than 5%. This goes to show that buying momentum is still strong in Dogecoin (DOGE) even as the market continues to spiral downwards. So what’s the magic behind Dogecoin?
Well, first, the Dogethereum driven momentum is still high in the Dogecoin market. In the last few days, Dogecoin (DOGE) has surged by over 100% and broken above a significant resistance point at $0.005 thanks to the Dogethereum news. This has drawn in lots of investors driven by FOMO. Now that Dogecoin has proven to hold its value relative to the rest of the market, more investments could flow in and drive up its value even further. If Doge sustains above $0.005 for the next 24 hours, and the rest of the market remains as it is, its value could surge to over $0.006, as more people would FOMO in, trying to take advantage of its price stability.
Another factor driving Dogecoin even as the rest of the market turns bearish is the fact that it requires a very low level of investment to put a good amount of it in a portfolio. While there are many other coins that trade at pennies, most of them have no intrinsic value, and are taking a beating at the moment. Dogecoin (DOGE) is one of the few good cryptos that investors, are willing to risk their money on under current conditions. It doesn’t require a big investment to get a sizeable bag of it, and if its volumes are anything to go by, people are buying it.
There is also the fact that investors are beginning to realize that Dogecoin (DOGE) could emerge as a default payment method on the internet. It is a true decentralized cryptocurrency, has a strong community behind it, and allows for fast and low-cost payments. This makes it the perfect replacement for fiat in the digital age. As this use-case becomes more pronounced, people are beginning to take Dogecoin (DOGE) seriously as an investment, as can be seen in its consistent rise in price, which has seen it go against the rest of the altcoins market.
It won’t be surprising if Dogecoin continues to gain in value, all through the year, and outperform all other cryptos including Bitcoin (BTC).