Should You Buy Dogecoin While It's Still Below $0.20?
About three years ago, Dogecoin (CRYPTO: DOGE) was on an incredible journey "to the moon." The dog-inspired token had won over speculators during meme-stock mania, hitting its peak price of under $0.74 in May 2021.
Dogecoin has been on a downward spiral since then, even as the overall cryptocurrency market continues on its path toward recovery. As of this writing, the token is 78% below its all-time high.
Perhaps the bulls are hoping that better days are ahead. Should you buy Dogecoin right now while it's below $0.20?
Renewed interest
The crypto market is once again winning over investors. The industry's market cap sits at $2.4 trillion (as of April 23), up from around $800 billion at the start of 2023. The monumental rise of Bitcoin, and Ethereum to a lesser extent, are propelling the gains.
Dogecoin substantially underperformed these top two cryptos last year. But it is winning the race in 2024, up 79% so far this year.
It's really hard to pinpoint what causes these huge price swings as they relate to digital assets. One such catalyst might be the belief that after the approval of spot Bitcoin ETFs, there could be more approvals on the horizon. Another catalyst might be that X, formerly known as Twitter, could integrate Dogecoin as a payment mechanism on the social news app. In theory, this would drive demand for the DOGE token, pushing up its price.
Excitement for this possibly game-changing outcome looks to be waning, though. Dogecoin has tanked 27% in the month of April. Extreme volatility is the name of the game, as various hype cycles can quickly come and go.
