Although Dogecoin (DOGE) has been feeling the selling pressure currently experienced by the majority of assets on the cryptocurrency market, hope remains that the dog-themed meme cryptocurrency could someday reach the price of $1 per wholecoin.
Indeed, DOGE has demonstrated its capacity for strong bullish rallies, including in May 2021 when it reached an all-time high (ATH) of $0.68184, which was also the closest price ever to the coveted $1. On this occasion, the asset has increased its price by a whopping 7,476% (and more) in a matter of months (from around $0.009).
Should Dogecoin truly manage to hit $1, it would equal an increase of around 1,250% from its current price, which would not be particularly impossible. With this in mind, Finbold has analyzed the factors that could (but do not have to) lead this crypto asset toward this price level, either acting alone or together with other factors.
Elon Musk’s continued support
Tesla (NASDAQ: TSLA) and X (formerly Twitter) CEO Elon Musk has long been one of the largest influences on the price of Dogecoin, which he has openly acknowledged as one of his favorite digital assets, aside from Bitcoin (BTC), so it is no surprise that DOGE price often responds to his public statements and actions.
For instance, DOGE recently saw an impressive price surge of over 20% upon the rumors that X could implement it as a means of payment. If Musk and X continue to vocally support Dogecoin, it could help keep the price elevated and make it more likely for the meme crypto asset to reach $1.
Increased institutional interest
Increased interest in investing in Dogecoin, coming from large financial (and other) institutions, could also help its cause, as it would signal to the market that this digital asset was a legitimate investment opportunity, which could also drive up the demand and, with it, the price of DOGE.
Indeed, the role of institutional investors has contributed to the rise of DOGE’s price in early 2021, and, more recently, Musk has revealed his 22-year plan to transform X into the world’s most valuable financial institution, his support for the meme asset only adding fuel to the speculation surrounding the potential incorporation of DOGE.
Widespread adoption and use
Should more people start purchasing and using Dogecoin, as seen when the cryptocurrency added close to 340,000 new holders in the three months leading up to the month of May this year despite strong competition from other meme cryptos, it could also help push the price of DOGE.
What could help in the more widespread use of DOGE is businesses accepting it as a means of payment, which is exactly what American movie theater chain AMC Entertainment (NYSE: AMC) did back in March 2022, when it added Dogecoin, Shiba Inu (SHIB), and other cryptocurrencies, as payment options via its mobile app.
Favorable regulatory environment
Amid what could be construed as a proper crusade against crypto coming from certain government and regulatory branches in the United States, support from regulators and governments would mean a lot for the entire sector, making it easier for businesses to accept DOGE as a method of payment.
Should this really take place, as it already is happening in countries referred to as ‘crypto havens,’ like Malta, Switzerland, Portugal, Singapore, Canada, Slovenia, Japan, The Netherlands, Germany, Estonia, El Salvador, and others, it could also boost demand.
Last but not least, if the Dogecoin development team makes significant technological improvements to its ecosystem, such as boosting its security or scalability, the asset could become more attractive to investors and users, thus driving up its price.
In March, the DOGE blockchain developers announced the release of an upgrade to the ecosystem, and more recently, in late June, pseudonymous Dogecoin developer Bluezr hinted at ongoing work on a Dogecoin Core upgrade, sharing a GitHub repository that listed ongoing contributions, reviews, and feedback for Dogecoin core 1.14.7.
Dogecoin price analysis
At press time, Dogecoin was changing hands at the price of $0.0742, up 1.33% on the day, losing 2.8% across the previous week, and gaining 7.75% on its monthly chart, according to the most recent information retrieved by Finbold on August 4.
Although there is no guarantee that Dogecoin will ever reach $1, the above factors could contribute to its strengthening and, with it, increase the meme cryptocurrency’s chances of reaching the target price. Time will tell whether this will, indeed, happen.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.