Is Dogecoin a Good Investment in July 2022?




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Dogecoin burst onto the scene during the first half of 2021, fuelled by the powerful combination of social media hype and name drops from high-profile celebrities. Although Dogecoin’s price has decreased significantly from May 2021’s lofty heights, many investors still believe the coin has significant upside potential.
This article will seek to answer the question ‘Is Dogecoin a good investment?‘ by discussing the coin’s utility and price prospects before highlighting where you can invest in DOGE today – with low trading fees.
DOGE logoDOGE logo
Dogecoin has undoubtedly been one of the top-performing cryptocurrencies during the last 18 months and is still regarded by many to be the best crypto under $1. However, for those wondering ‘Is Dogecoin a good investment?’, it’s vital to dig a little deeper and look for evidence aside from retail-driven hype.
Overall, Dogecoin doesn’t have the real-world utility to sustain upwards momentum over the longer term. The coin’s initial price rise was driven by hype and awareness generated by the mainstream media. Since these factors have died down, DOGE has showcased consistently poor performance.
For this reason, our opinion is that Dogecoin is best suited to risk-seeking investors who are happy to open a position out of hope rather than expectation. DOGE can undoubtedly still provide positive returns – but it’s probably not the best crypto asset for risk-averse investors.

Cryptoassets are a highly volatile unregulated investment product.

Those who invest in cryptocurrency may already know about the origins of Dogecoin, as the coin was initially created as a joke by two software engineers. Billy Markus and Jackson Palmer worked for IBM and Adobe respectively, and aimed to develop a peer-to-peer payment system (similar to Bitcoin) but with less controversial connotations.
Dogecoin was officially launched in December 2013, using a proof-of-work (PoW) algorithm that is closely related to the structure used in Litecoin. The coin immediately attracted a high volume of traders, helping the DOGE price surge by over 920% in January 2014. However, the hype was short-lived, and Dogecoin’s price sank back to $0.0002, where it remained for the next few years.
DogecoinDogecoin
The cryptocurrency bubble in early 2017 saw more people than ever opt to invest in Dogecoin. This saw Dogecoin’s price increase by a remarkable 2196% in just a few months, highlighting to investors that there may be more to DOGE than meets the eye. There were similar price spikes in the following years, although it was only in early 2021 when Dogecoin really hit the big time.
The short squeeze caused by vast numbers of traders opting to buy GameStop stock ended up having a knock-on effect on ‘meme coins’ like Dogecoin, with retail investors plunging their money into DOGE for purely speculative reasons. This started a chain of events that led to Dogecoin’s price rising exponentially, going from $0.01 in January 2021 to an all-time high of $0.7579 in May 2021 – an increase of over 7400%.
DOGE price chartDOGE price chart
This high was only fleeting, and the investors who opted to buy Dogecoin gradually began closing their positions, forcing the price back down. The price slowly descended for the remainder of 2021 and is now trading at around $0.1630 – a 78% drop from May 2021’s highs.   
When considering a Dogecoin investment, it’s not only essential to understand the coin’s price history, but the position that price is in right now. At the time of writing in April 2022, Dogecoin’s price has actually risen by 47% over the past few weeks. But can it still be considered one of the best meme coins, given the steep drop we have seen over the past year?
From a technical standpoint, we can see a clear support level around $0.1100 that has held the price up twice in the past month. Both times DOGE has touched this level, it was immediately rebounded and produced double-digit returns. In addition, Dogecoin’s price currently appears to be breaking through the minor resistance level at $0.1650.
DOGE technical analysisDOGE technical analysis
Zooming out on the price chart, we can see that the intensity of Dogecoin’s price swings has significantly diminished. This is ultimately a good sign for those looking to invest in Dogecoin, as it hints that selling pressure is beginning to wane. The fact that this coincides with DOGE rebounding from support helps to build a case that we could see a reversal in the coming weeks.
From a macro perspective, there is no important crypto news causing this turnaround in fortunes for Dogecoin. The broader cryptocurrency market is still finding its feet following the situation in Ukraine, with major cryptos still trying to sustain upward momentum.

Cryptoassets are a highly volatile unregulated investment product.
Dogecoin Highs and Lows
Now that you have an overview of Dogecoin’s price history, let’s briefly summarize the coin’s major highs and lows since inception:
Given the information presented above, is Dogecoin a smart investment? Like many of the best altcoins, it’s challenging to base price predictions on technical factors alone, as the price can be highly volatile on a daily and weekly basis. Although DOGE has showcased some bullish momentum recently, we need to dig a little deeper when making a price forecast.
The majority of Dogecoin investors will be hopeful that the coin could return to the all-time highs of May 2021 – and potentially beyond. However, from an objective standpoint, this would be extremely difficult since those highs resulted from a ‘perfect storm’ of external factors. The massive number of retail traders that invested in DOGE, combined with the coin being mentioned in the mainstream media, helped push price to levels that it could not have achieved on its own.
elon musk Dogecoinelon musk Dogecoin
This sequence of events also occurred later in the year when many investors opted to buy Shiba Inu, which caused a snowball effect leading to more and more people investing. Ultimately, this pushes the price higher, but it can form a ‘bubble’ since these price rises are not based on utility or fundamentals.
Turning our attention back to our Dogecoin price prediction, we believe that DOGE could provide solid returns for investors over the longer term. However, we wouldn’t expect these returns to be anywhere near the quadruple-digit returns experienced at the start of 2021.
Dogecoin price predictionDogecoin price prediction
In the next few months, we expect Dogecoin to continue rising towards the resistance level located at $0.2130. This would represent a solid 33% return from the current price. Following this, the next target would likely be the psychological level of $0.3000, where there appears to be significant selling pressure. If DOGE reaches this area, it would result in a return of 87% from the price we see today.
The best crypto to invest in usually have real-world utility that helps them become inherently valuable. A prime example of this is Ethereum, one of the most popular cryptocurrencies due to the network’s support for smart contracts and NFTs. With that in mind, how does Dogecoin’s utility stack up against the major players in the market?
Firstly, it’s important to note that Dogecoin’s utility is relatively low compared to the likes of Bitcoin, Ethereum, and Cardano. The coin was initially designed to be used as a way to transfer value between two people – and it hasn’t expanded beyond that.
Dogecoin codeDogecoin code
Dogecoin is based on the Scrypt algorithm and employs a proof-of-work (PoW) consensus protocol. Ultimately, this does mean that transfers made using Dogecoin are significantly faster than Bitcoin. However, Bitcoin was the ‘first mover’ in the space, so it’s doubtful that people will begin using DOGE en masse.
The coin can also be used to pay for goods and services. According to data gathered from cryptwerk, DOGE is now accepted by over 2,000 merchants worldwide. There are a few that some people may recognize, such as CoinPayments and HostMeNow, although the vast majority are minor companies.
Dogecoin merchant acceptance statsDogecoin merchant acceptance stats
Dogecoin has also been used as a way to tip people online. This was achieved through the use of ‘Dogetipbot’, which allowed people on Reddit and Twitch to send DOGE to other users in just a few clicks. However, the Dogetipbot was discontinued a few years ago, so this use case isn’t viable anymore.
As you are probably aware by now, Dogecoin doesn’t appear to have any significant use cases that would lead to demand from a large audience. In simpler terms, Dogecoin seems to be a vehicle for speculation, with the coin being traded on many of the best altcoin exchanges. Due to this, DOGE lacks the basis for a good long-term investment, meaning the coin is likely more suited to casual or risk-seeking investors.
etoro reviewetoro reviewUntil now, we’ve focused on answering questions like ‘Will Dogecoin recover‘ and ‘Is Dogecoin a smart investment?’.
However, it’s also important to discuss where to invest in DOGE if you wish to do so. Fortunately, many of the best crypto exchanges support Dogecoin trading due to the coin’s popularity with retail traders.
Our number one pick when it comes to crypto exchanges is eToro. eToro is one of the largest trading platforms in the world, with over 24 million registered users. The platform is well-known for its safety and cost-effectiveness and is regulated by several top-tier entities, including FINRA, FinCEN, FCA, ASIC, and CySEC.
When you purchase Dogecoin (or any other crypto) with eToro, you gain full ownership of the asset. eToro charges a flat 1% fee on buy and sell positions, plus the bid-ask spread. There are no other hidden charges, and eToro also doesn’t charge a monthly or annual account fee.
etoro crypto investingetoro crypto investing
In terms of deposits, eToro allows users to fund their accounts with as little as $10. Instant deposits can be made via credit/debit card or e-wallet, with full support for PayPal, Skrill, and Neteller. Notably, deposits are free to complete if made in USD.
Finally, eToro even offers one of the best crypto wallets on the market, which is entirely free to download on iOS and Android. This wallet supports a vast range of crypto assets and is secured by advanced standardization protocols and DDoS protection. There’s even the ability to exchange one crypto for another within the wallet’s interface, meaning everything can be accomplished in one handy app.

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Cryptoassets are a highly volatile unregulated investment product. 
Overall, is Dogecoin a good investment? Advocates for Dogecoin believe that it is one of the most undervalued cryptos, even after the substantial price rises in recent years. However, from a fundamental standpoint, it’s hard to make a case for DOGE generating similar returns to 2021.
One of the main elements going in Dogecoin’s favour is its strong community backing. The Dogecoin subreddit boasts over 2.3 million members, highlighting that there is still buying power ready to unleash. Having said that, anytime Dogecoin displays some upwards momentum, selling pressure forces the price back down.
Dogecoin analysisDogecoin analysis
In our opinion, Dogecoin could still be a good investment for people who have some spare money and are happy to open a highly speculative position. There’s certainly scope for Dogecoin to provide double (or triple) digit returns – but it’s just as likely that the coin could plummet even further in the months and years ahead. For this reason, DOGE investing is perhaps more suited to risk-seeking investors rather than low volatility investors.
To summarize, this article has covered everything you need to know about making a Dogecoin investment, highlighting the coin’s history before presenting in-depth price predictions for the weeks and months ahead.
Although Dogecoin has had a great couple of years, it seems like the hype is now over since the coin lacks any significant use cases. For this reason, we recommend investors lean towards cryptos with real-world utility. Lucky Block is one of these cryptos due to the platform’s innovative approach to lottery systems. It is also considered one of the best cryptos under $1.
Given that Lucky Block’s crypto draws are set to commence soon, we’ll likely see increased demand for LBLOCK, the platform’s native token. In addition, since LBLOCK holders will be rewarded for holding the token, there’s also scope to create a passive income stream while benefiting from value increases.
lucky-block-logolucky-block-logo

Cryptoassets are a highly volatile unregulated investment product.
The answer to this question will ultimately come down to your investment goals and level of risk tolerance. Dogecoin has undoubtedly shown incredible price rises in the past, but that doesn’t mean it will happen again – meaning the coin is perhaps more suited to risk-seeking investors.
Dogecoin does have value at current levels, although not with the same significance as in early 2021. For Dogecoin to be truly valuable, we’d need to see some real-world use cases being developed.
This will all come down to your unique investment situation, although it’s best to start with small stakes first due to DOGE’s volatile nature. You can then build up your position over time if you see fit.
  This article was written for Business 2 Community by Connor Brooke.
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