Dogecoin price has been in the spotlight recently. The DOGE price has jumped by 626% since January 28, bringing its market cap to more than $6.85 billion. This is an incredible feat for a cryptocurrency that was started as a joke a few years ago.
Dogecoin news: Dogecoin rally has been helped in part by Elon Musk, the richest man on earth, who has endorsed the currency on Twitter. As such, while DOGE is not widely used as a currency, investors have piled into it because of its wealthy backer.
However, as Elon Musk has pointed, the biggest risk for the currency is its ownership structure. In a tweet last week, he warned that concentration by top holders posed a key risk. He even offered to buy out some of their holdings.
Details of Dogecoin’s ownership are not yet public. But a report by the Wall Street Journal said that the biggest holder owns DOGE worth more than $2.1 billion. This is almost a third of the total Dogecoin in circulation.
Because of how it is structured, it is relatively difficult to know who owns it but the paper ruled-out Elon Musk. The risk is that the holder could flood the market with dogecoins, which could cause its price to fall.
Dogecoin price prediction
In my last Dogecoin price prediction, I predicted that the currency had a 17% upside to $0.064. Unfortunately, this forecast has not succeeded as the price has continued to decline, albeit slowly.
Still, looking at the four-hour chart, we see that DOGE has formed a narrow descending channel pattern. In technical analysis, this is usually a bullish continuation pattern because it shows that there are not enough sellers. Therefore, in the near term, there is a possibility that the price will break-out higher. However, a drop below the support at $0.4698 will invalidate this trend.
DOGE price chart