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Is Dogecoin (DOGE) a good investment in 2023?

Is Dogecoin (DOGE) a good investment in 2023?

Traders and investors in Dogecoin (DOGE) have been gauging what 2023 will bring for the dog meme digital asset, which has gone through a rough patch in recent months. However, it has held up much better than most of the top assets on the market amid the severe crypto downturn in 2022.

Dogecoin, in particular, was the second-best performer out of the top ten cryptocurrencies by market cap in 2022, having dropped ‘just’ 54% this year, behind only Binance Coin (BNB) as per the ‘State of the Network’ report by the blockchain analytics platform CoinMetrics published on December 20.

Looking at the top ten assets by market capitalization over the last 12 months, Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), and Polygon (MATIC) all lost significantly more, respectively.

Moreover, as the 2022 cryptocurrency market bloodbath continues, more than half of Dogecoin investors are still profiting; about 54% of DOGE holders were in profit based on the token’s price on December 27. Another 43% of the holders are at a loss, while 3% have broken even, according to IntoTheBlock data.

DOGE technical analysis

The sentiment monitored on the 7-day gauges over at TradingView is predominantly on the bearish side, its summary indicating a ‘sell’ at 13, as oscillators stand in the ‘neutral’ area at 3 and moving averages point to ‘strong sell’ at 12.

DOGE 7-day gauges. Source: TradingView

In spite of the fact that Dogecoin is mostly trading in the red zone, the meme currency has recorded flashes of rallies spurred by input from Tesla (NASDAQ: TSLA) CEO Elon Musk. The asset price surge may be directly attributed to Musk’s frequent Twitter (NYSE: TWTR) commentary in which he expresses his enthusiasm for DOGE. 

Part of the current spike was prompted by Musk’s formal acquisition of Twitter, which fueled speculation that the coin might be integrated as a payment method on the social media network.

Where will DOGE go from here? 

Generally speaking, investors will be searching for prospective news of expanded network construction and improved adoption rates. For example, DOGE saw a brief period of price appreciation when it was reported that Elon Musk and Vitalik Buterin, the co-founder of Ethereum, may be working together to strengthen the digital asset.

At the end of the year 2022, investors in DOGE will be hopeful that the asset has reached a bottom and will start a fresh surge. The machine learning algorithm at PricePredictions estimates that DOGE would trade at $0.079 on January 1, 2023.

As things stand, the dog meme token is currently changing hands at the price of $0.07077, which demonstrates a decline of 0.39% over the previous 24 hours, along with a 4.6% drop across the week.

DOGE 1-day price chart. Source: Finbold

With a market capitalization of $9.44 billion, Dogecoin has assumed the position of the eighth-largest digital asset among the top 100 cryptocurrencies by this indicator. 

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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