Dogecoin is a digital currency created by software engineers in 2013. It was designed to function as a medium of exchange through which people make instant and free transactions, unlike transactions in the traditional banking system. The creators of Dogecoin claim to have started this entire project for fun and without clear objectives. The symbol for the currency originated from the face of the Shiba Inu dog, initially derived from a dog meme. After developing a large online community, its market cap reached $ 5,382,875,000 in 2021.
Tokens and cryptocurrencies that are not Bitcoin are also known as alternative cryptocurrencies or Altcoins. Dogecoin is among these altcoins that gained significant momentum and volume in 2021. It is based on Luckycoin, which is in fact based on Litecoin as well. Dogecoin increased by 540% in value so far this year, and a gain of 1070% from its all-time highs in mid-February 2021. The huge volume and surge in price came after Elon Musk offered help to make Dogecoin become the "currency of the internet. Another reason for this significant rally was Reddit's huge buying frenzy on the coin, making it equivalent to GameStop's buying craze. Dogecoin had an initial supply count than 100 billion coins in circulation.In 2015, the creators of the coin agreed to add 5 billion coins to the market each year.
After the wild rise in most cryptocurrencies and especially the significant uptrend of Dogecoin, investors are wondering if this cryptocurrency is worth adding to their portfolio. The current value of the coin lies in the strong community that built this coin, and in the expectation that altcoins will continue their bullish momentum as banks and economies are beginning to assess the feasibility of replacing paper money with a currency. digital. If digital assets continue to show higher demand from merchants, Dogecoin will surely be among the top winners due to its popularity and value. 
The main component that separates this coin from most cryptocurrencies is that it is an inflationary asset, which means that there is no limit to the number of coins in circulation. This feature was also designed to help replace lost coins and maintain a stable market. This attribute makes Dogecoin look promising, as other hard-supplied cryptocurrencies may no longer be profitable for miners, because the system will not be as feasible and sustainable as before due to higher fees and very long transaction times. . If miners start to abandon a coin and show no significant demand, a loss in value will be inevitable; however, this is not the case for Dogecoin.
From a technical perspective, Dogecoin is currently trading at its 50% Fibonacci retracement level and is bouncing off a major support zone. If more volume and demand come into play, traders expect a rise to the $ 0.1130 level, which is an approximate 130% gain from the current price level of $ 0.05. A buy entry at $ 0.05 with a tight stop placed below the support at $ 0.0408, and a take profit target of $ 0.1130 is certainly a worthy investment; since this operation reaps a risk / reward ratio of 1: 8 with a relatively probable result.
By historical standards, Dogecoin is a great investment. Cryptocurrencies are the highest-performing asset class of the last decade, appreciating thousands of percentage points. Can these altcoins sustain this exponential growth? Potentially yes, on the condition that investors always have an appetite for risk and that digital assets replace traditional investment vehicles.
