The market has been on a rollercoaster ride today. A few hours ago, Bitcoin pumped, hitting highs $7700 on bitfinex, and $6900 on most exchanges. In this pump, it pulled the rest of the market with it. Speculation is rife that this was caused by fears of tether collapse. Since those fears seem to have subsided, the gains made earlier in the day have gone down as well. But what if tether were to lose value for real, would Dogecoin (DOGE) survive it? Well, looking at Doge’s market dynamics there is a good chance that Dogecoin would survive it.
First, it is clear that, were tether to falter, people would most likely move over to bitcoin (BTC) as was seen today. This would most likely push up bitcoin (BTC) and by extension Dogecoin (DOGE), since it is still tied to bitcoin’s price movements. Therefore, in case of such an occurrence, bitcoin (BTC) would most likely push to over $10,000, and for a coin that is already as bullish as Dogecoin, the price rise would be huge.
There is also the fact that Dogecoin (DOGE) has a strong community behind it. The Doge community is constantly voted as one of the best in crypto, and this is a big deal. It’s a big deal because they care about the project, beyond its daily price movements. This has come out clearly in the last couple of months when the market has been heavily bearish, and Dogecoin has been largely stable. As a matter of fact, Dogecoin (DOGE) has been one of the biggest gainers in 2018. As such, even if the market were to falter due to tether issues, Dogecoin (DOGE) would most hold its value, just like it has, all through the bear market.
Dogecoin’s value will over time be more anchored on its usage in the market, and that usage is growing. At the moment, it has some of the highest transaction volumes in the market, and these volumes are rising. As more people learn of the value of Dogecoin for online transactions, the value of this coin in the market will rise too, irrespective of the direction that tether takes the market.
Looking at the charts, Dogecoin (DOGE)’s prospects in the market look good going into the long-run. In the weekly charts, Dogecoin (DOGE) has formed what looks like a bullish signal, and could possibly be headed for a bullish breakout. For the last 5 weeks, Dogecoin (DOGE) has been experiencing a minor correction. However, this correction has failed to take Dogecoin (DOGE) below the last bullish candle over a month ago that pushed Dogecoin from 76 satoshis to a high of 110 satoshis.
On top of that, the drops have been declining in strength every week, meaning that bears are losing momentum. As such, a sudden influx of bullish sentiment at this price level could see the value of Dogecoin (DOGE) push above 110 satoshis and possibly hit a high of 127 satoshis. It’s the last high it has hit in the last two months and one that could possibly offer strong support.