Market Psychology and its impact on Dogecoin (Doge) prices

Cryptocurrencies However, there is another cryptocurrency that has been flying under the radar – Dogecoin (Dux). Despite its relatively low market capitalization, Dege has won massive followers full of enthusiasts and has experienced some significant price movements in recent times.

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MARKET PSYCHOLOGY 101

Psychology is. Market psychology refers to the study of consumer behavior, preferences, attitudes and emotions that influence investment decisions in financial markets. It implies understanding how investors think, feel and react to various conditions, trends and market events.

The emergence of Dogecoin

Dogecoin was launched in 2013 by Jackson Palmer and Billy Markus as a pairs payment system. Initially, popularity is proven on players and enthusiasts due to their easy use, speed and relatively low transaction rates. However, it was until May 2017 that Dege reached the maximum price of $ 0.30 per currency, which marked the beginning of a significant increase in interest.

Market psychology behind Doge

So what drives market psychology behind Doge? Several factors contribute to their popularity:

1.

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. This nostalgia factor contributes to its price -driven price movements.

• Speculation and Fomo : As with other cryptocurrencies, speculation works and an important role in Doge prices. Many merchants are attracted to the potential that it reaches $ 1 or more, creating fomo (fear of getting lost) among investors.

IMPACT OF MARKET PSYCHOLOGY IN PRICES

Now that we have explored market psychology behind Dege, let’s examine how its prices have impacted over time:

| Year | Price range

| — | — |

| 2013 | $ 0.001 – $ 5.00 |

| 2017 | $ 0.30 – $ 1.80 |

| 2022 $ 0.05 – $ 0.20 |

. The community and the adoption of Dux, endorsements of social networks, nostalgia and feeling, speculation and fomo.

Feelings analysis

An analysis of feelings of Doge price movements reveals a clear pattern:

• During the 2017 increase, Dege experienced a significant appreciation of prices, and prices increased by more than 8,000%.

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This suggests that market psychology has played an important role in configuration of Doge price movements. Investors and merchants react to change the mark of their decisions.

Conclusion

Market psychology plays a crucial role in the configuration of cryptocurrency prices such as Dogecoin (Doge). Investor investors behavior, we can better predict price movements and make informed investment decisions.