Dogecoin, the meme-inspired cryptocurrency that started as a joke, has become one of the largest cryptocurrencies by market capitalisation, which came as a surprise to many, including its creator. The future of this unusual crypto coin, which has spawned many imitators, is sparking keen interest in the cryptocurrency community. Many crypto enthusiasts have questions like "Why is Dogecoin falling?" and "Is Dogecoin going to go back up?" on their minds now. In this article, we will delve into the reasons behind Dogecoin's price fluctuations and whether it has the potential to recover and rise again in the future.

Lots of people I talked to on the production lines at Tesla or building rockets at SpaceX own Doge. They aren't financial experts or Silicon Valley technologists. That's why I decided to support Doge – it felt like the people's crypto. — Elon Musk.

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Will Dogecoin ever go back up?

Dogecoin was created in 2013 by software engineers Billy Markus and Jackson Palmer and has since had many ups and downs.

Dogecoin (DOGE) characteristics (as of 14/02/2023)

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Why did it spike, and why did its value rise?

The Dogecoin was created as a joke, but it soon gained a dedicated following, with its Shiba Inu dog meme logo becoming iconic. In the early days of its existence, Dogecoin had a small but passionate community that used it for small online transactions and tipping content creators. During the 2017 bull run, its price experienced a fairly strong rise along with the rest of the crypto market, but the coin was still relatively unknown to the general public.

However, things changed drastically in early 2021 when the value of Dogecoin began to surge due to increased interest from the wider public, including celebrities such as Elon Musk and Snoop Dogg tweeting about it. The sudden interest from the public, combined with its low price and high supply, made Dogecoin accessible to a large number of people leading to a buying frenzy that resulted in a massive spike in its value.

Why does Dogecoin fall?

Dogecoin's fall in price is primarily due to the same reasons that caused its initial rise - the market cycle and public interest. The sudden increase in popularity brought in a lot of inexperienced investors who were looking to make quick profits. The inevitable correction that began after the sharp rise in price prompted many of them to sell the coin, which put additional pressure on the price. More experienced investors, on the other hand, expressed concerns about the long-term viability of the meme coin, which achieved popularity mainly due to hype, and pointed to the lack of real use cases and the absence of a clear development plan.

The crypto market's bearish trend that began in late 2022 led to the price drop of all cryptocurrencies, which further accelerated the decline of the DOGE that had already taken place.

When will Dogecoin rise again?

As with all investments, it's impossible to predict with certainty when Dogecoin's price will go back up. The cryptocurrency market is highly unpredictable and can be influenced by a multitude of factors. However, there is a chance that the bearish trend in the crypto market has come to an end. This means that, in the short term, the price of Dogecoin is also likely to rise. And if the overall crypto market continues to grow and mature, it can provide a positive environment for Dogecoin to grow, as well.

As for the long term, the future of Dogecoin will depend on its ability to evolve and adapt to the changing crypto industry and to build trust with the wider public. The popularity of the meme coin will only get you so far, and Dogecoin needs to evolve if it is to survive.

Top reasons Dogecoin can survive

Despite the challenges Dogecoin is facing, there are reasons why it can still survive and thrive in the future. Some of the top reasons why it can survive include:

• Strong community support. Dogecoin has a large and dedicated community of supporters who have been with the coin since its early days. This community has played a significant role in promoting Dogecoin and keeping it relevant, and its continued support can help Dogecoin to stay afloat in the future.
• Widespread use. Dogecoin has a strong following among internet communities and is widely used for small transactions, tipping content creators, and charitable donations. This widespread use of Dogecoin as a means of payment could help to maintain its relevance and stability in the future.
• Development: Despite the lack of a clear roadmap, Dogecoin's development team is still working to improve the cryptocurrency's technology and ecosystem. This ongoing development can help to ensure Dogecoin's survival in the long term.
• Decentralisation. The community-driven development and high degree of mining decentralisation make Dogecoin a highly decentralised cryptocurrency. In the eyes of many crypto enthusiasts, it is a definite plus which increases the attractiveness of the coin.

Is Dogecoin a good investment in 2023?

As with any investment, there are no guarantees, and the future of Dogecoin is subject to a range of uncertainties. In addition, "good investment" has a different meaning for each investor and depends on many factors, such as terms of investment, risk appetite, etc.

Having said that, it is worth noting that if a new bullish trend starts in the cryptocurrency market in 2023, the price of DOGE is likely to rise with the rest of the crypto market. However, given Dogecoin's high market cap and the lack of use cases, it is unlikely that its price growth can outperform that of other cryptocurrencies.

It is also important to remember that investing in cryptocurrencies is risky and can lead to significant losses. It's, therefore, important to do your own research before investing and not invest more than you can afford to lose.

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DOGE/USDT price chart

When is the best time to buy Dogecoin

The best time to buy Dogecoin is highly subjective and depends on a number of factors, the chief of which is the purpose of the purchase and, therefore, the length of time you are going to hold Dogecoin. The longer you plan to hold the coins you buy, the more carefully you need to choose when to buy them. If you buy it in order to use it immediately as a payment or for a money transfer, it doesn't make much difference when you buy it. But if you buy it for trading, you will have to apply technical analysis to choose a proper moment. And if you consider Dogecoin as a long-term investment, then fundamental analysis might be your best bet, even though it's frustratingly unreliable when it comes to cryptocurrencies.

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