Will Dogecoin break past the crucial $1 mark? Speculators have been working overtime digging into the various factors that could power the underling in the cryptocurrency world past the key marker.
According to an analyst, the cryptocurrency may rise from the depths in the coming days and breach the $1 threshold to hit a "new all-time high".
Crypto analyst AJ Clores says he believes dogecoin will hit $1 in the next few days. He predicates his belief on two things -- Tesla accepting Dogecoin as a payment option and Coinbase listing in the near-term.
Will Tesla Accept Dogecoin?
On his YouTube channel 'Self Made' he says these two things are quite possible, thereby helping dogecoin get into an uncharted course in its life.
"Firstly, if Tesla actually accepts Dogecoin as a form of payment which is slowly looking more and more like it will happen, it will see a huge increase," says AJ Clores.
He also tries to draw a comparison with the situation Bitcoin was before Tesla accepted it as a payment option. "Bitcoin when accepted by Tesla saw an increase of 70 percent. If we took the price of Dogecoin now at $0.35 (Â£0.25) it would see an increase to $0.60 (Â£0.42).
Then comes the possibility that Coinbase listing giving all cryptocurrencies a shot in the arm. "Secondly with the Coinbase listing coming up very soon, it seems that Dogecoin really pushes to an all-time high just before a specific news drops. During the anticipation for Elon Musk being on Saturday Night Live, we saw the price of Dogecoin go from $0.30 (Â£0.21) all the way to $0.75 (Â£0.53) which is a 155 percent increase," he says, according to RT.
"If we take a 155 percent increase to the price of $0.60 (Â£0.423 we could see it at $1.60 (Â£1.13) easily. Lastly, if you have ever heard of the 'Coinbase effect' it is basically when a crypto is listed on Coinbase it results in a drastic increase in sales and pushes to new all-time highs," he adds.
Crossing $1 Mark in 2021?
Dogecoin came from the woods all of a sudden when Tesla founder Elon Musk started showing interest in the coin. Ahead of his Saturday Night Live Show last month, the coin saw a massive rise, followed by even more volatility.
Ahead of the SNL, Elon Musk tweeted he would entertain people by dedicating the show to the cryptocurrency, prompting investors to channel their funds to the coin, hoping the returns would be doubled. But it is another matter that the show turned to be a disappointment for the coin.
According to an analysis done by ProVsCons, Dogecoin is expected to cross the $1 mark in 2021 and might also cross $2 by the end of the year.
However, experts claim that Doge's growth would reach a boiling point after crossing the $2 mark and moving upwards further would occur only if it happens naturally and not artificially inflated by tweets and shows by celebrities, as the excitement towards it would fizzle out with time and the focus would move to other cryptocurrencies which also delivers similar or more gains.
Dogecoin is currently valued at $0.32 but it had fallen further to 0.28 last month.
Now the hope for Dogecoin is no longer Elon Musk, but the expected listing on Coinbase. The platform has announced that it will begin accepting inbound transfers of Dogecoin to Coinbase Pro in some parts of the world.
"If Dogecoin is going to be on Coinbase, I can see a massive increase is due to the popularity," says AJ Clores.