Dogecoin's price is apaching $0. 20; history shows a pattern of what tends to happen around these price points. There are many different ways to invest in cryptocurrency.
For those who want direct exposure, some of the more opportunities include in Bitcoin or Ethereum.
By contrast, some may choose a more passive route -- in public companies such as Coinbase Global, Circle, or Robinhood, whose respective models touch the cryptocurrency landscape in a variety of ways.
There are plenty of other choices beyond the main stocks and cryptocurrencies referenced above, however. In recent years, one cryptocurrency that has burst onto the scene is Dogecoin (DOGE 1.
Let's explore the rise in Dogecoin's ity. More importantly, let's explore some patterns in the crypto's price action during the last several years. For just $0.
17, should investors consider buying Dogecoin right now. Read on to find out. Why did Dogecoin's price rise so sharply.
Throughout 2024, Dogecoin's price didn't move too dramatically until the last couple of months of the year.
Between November and December, the price of Dogecoin suddenly spiked dramatically -- increasing from $0. 15 to a high of $0.
In my eyes, Dogecoin's sharp rise can be tied to the outcome of the presidential election.
Ing Donald Trump's victory in early November came the creation of the Department of Government Efficiency (DOGE).
Tesla Chief Executive Officer Elon Musk was initially tasked with managing the DOGE initiative.
In years past, Musk has jokingly touted Dogecoin on several occasions -- from posting memes on social media to incorporating references to the cryptocurrency during his appearance on Saturday Night.
I think the DOGE moniker used by the Trump administration, combined with Musk's perceived interest in Dogecoin specifically, fueled a hype narrative that suggested Dogecoin could be worth buying.
Image source: Getty Images. What does history suggest could happen to Dogecoin. The chart below illustrates Dogecoin's price during the past five years.
After sifting through the various peaks and valleys seen below, investors can begin to form some critical insights. Dogecoin Price data by YCharts Namely, when Dogecoin begins to hover around $0.
15 (close to where it is now), the price usually experiences notable increases. These surges are often transient and generally the rally fades at $0.
While history is not a guarantee of future results, it can still be a good reference point. In my view, the current price of Dogecoin could suggest that a run-up is right around the corner.
But as I alluded to above and the chart dynamics make, any increase in Dogecoin's price from here will ly be met with a ceiling soon thereafter and ed by a precipitous sell-off.
Is Dogecoin a buy right now. Given the ideas explored above, I would say that Dogecoin is on the higher end of the risk spectrum when it comes to in cryptocurrency.
Un Bitcoin or Ethereum, Dogecoin is a meme coin and doesn't offer much in the way of real-world utility. In fact, Musk himself even said that the U.
Government does not plan to utilize Dogecoin in any way that he is aware of.
When you factor that into the equation, any potential ties between DOGE and Dogecoin disappear -- damping the recent excitement that fueled Dogecoin in the first place.
While I do think Dogecoin could climb higher from its current levels in the short term, I'd caution investors from getting caught up in a momentum trade.
Smart investors understand the risk of buying at the wrong time and ending up holding the bag.
In the long run, I don't see Dogecoin as a viable opportunity in the crypto landscape and think it is best avoided. Adam Spatacco has positions in Tesla.
The Motley Fool has positions in and recommends Bitcoin, Ethereum, and Tesla. The Motley Fool recommends Coinbase Global. The Motley Fool has a disclosure policy.