Dogecoin has seen a solid 4.26% price increase over the past 24 hours to $0.078 according to our data provider CoinStats. This continues Dogecoin's strong short-term uptrend, with gains of 14.35% and 15.15% over the past week and month respectively.
Looking at the volume data, we can see that $1.61 billion worth of Dogecoin has been traded in the past 24 hours. That's significantly above the average daily volume, indicating increased interest and trading activity likely contributing to the price rise.
Analyzing the 1-hour percentage change, Dogecoin is up a more modest 0.57%, suggesting some potential short-term profit taking and consolidation around the new higher level. Zooming out further, Dogecoin remains down 9.42% over the past 6 months.
Overall, this recent price action analysis indicates Dogecoin's impressive short-term momentum remains intact. However, the longer-term technicals remain more mixed after the huge run up and "meme rally" in early 2021.
I expect Dogecoin may continue to trade sideways in the $0.06 to $0.10 range in the near-term as it establishes a new baseline after last year's frenzy. Further meme hype could lead to short-term spikes, but sustainable upside will likely depend on advancing Dogecoin's fundamental development and real-world utility.
What Price Could Dogecoin Realistically Reach This Cycle?
Given Dogecoin's already massive rally in 2021, I think it will be difficult to replicate the same magnitude of gains this cycle. However, further upside of 100-200% from current levels is certainly possible during an extended bull run.
That would potentially put Dogecoin in the $0.15 to $0.25 range later this cycle if meme coin hype returns and the overall crypto market sees bullish momentum continue. There is also a scenario where Dogecoin retests its all-time high around $0.70 if it goes parabolic again near the cycle peak.
Overall, being realistic following last cycle's euphoria, I would expect Dogecoin to trade mostly between $0.05 to $0.20 over the next 6-12 months. The higher end of that range would require recapturing the meme magic or substantial tech improvements to support more mainstream use cases.
Is Dogecoin a Good Investment in 2023?
Dogecoin remains one of the highest risk, highest reward cryptocurrency investments. It lacks the technology, network effects, and institutional adoption of an asset like Bitcoin. However, its strong brand and marketing makes it popular for speculative hype-driven rallies.
For most investors, I would only recommend allocating a very small percentage of crypto portfolio exposure to Dogecoin, if any. The fundamentals are not there to justify significant long-term holdings.
That said, it can be worthwhile to trade Dogecoin and try to time short-term meme rallies. Just don't get caught holding the bag when hype eventually fades. Do your own research, invest smart, and only wager what you can afford to lose.