Fundamental analysis of Dogecoin
Fundamental analysis aims to evaluate the inherent value of an asset, while technical analysis involves examining statistical patterns in the price and volume of that asset. Both techniques are used to analyze and predict potential future price developments of that asset. In the case of DOGE, the simplest way to perform fundamental analysis is to look at supply and demand dynamics. Additionally, market capitalization (18.4B) and circulating supply (143.3B) can be considered to make reasonable price assumptions for the future. On the demand side, it is possible to look at on-chain data regarding the number of new and active addresses as well as the number of transactions.
What drives the price of Dogecoin?
There are several actors in the cryptocurrency market that can push the price of Dogecoin up or down. The main focus behind Dogecoin's asset value is market supply and demand. And whether the demand for more DOGE increases or decreases depends greatly on increasing adoption. Furthermore, important events such as protocol updates or hard forks can also play an important role in Dogecoin's price. Another major factor to consider is whale activity. People who hold a lot of Dogecoin can greatly impact the price as a large sell order can drop the price significantly. Additionally, never underestimate the power of massive institutional adoption and political regulation on Dogecoin's value.
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