Dogecoin price prediction – can be a determinism supposed?

Pump-and-dump schemes are a phenomenon of many cryptocurrencies, including Dogecoin. We have identified repeating shapes on the graph of its price. It is obvious that the price development during last period replicates the development from the previous period. The aim of the article is to create a p...

Ausführliche Beschreibung

Gespeichert in:
Bibliographische Detailangaben
Veröffentlicht in:Ekonomika a spoločnosť 2021, Vol.22 (2), p.67-81
1. Verfasser: Medzihorský, Juraj
Format: Artikel
Sprache:eng
Schlagworte:
Online-Zugang:Volltext
Tags: Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
Beschreibung
Zusammenfassung:Pump-and-dump schemes are a phenomenon of many cryptocurrencies, including Dogecoin. We have identified repeating shapes on the graph of its price. It is obvious that the price development during last period replicates the development from the previous period. The aim of the article is to create a predictive model based on these replications. Using linear regression, we have developed the model with 87% accuracy on 3-month test set. Therefore, we claim that Dogecoin price development shows a significant degree of determinism. Our model also predicted the significant recent short-term rise (on 28 October 2021), despite the fact it was caused by Elon Musk’s tweet. We have shown that timing of this rise corresponds to the timing of another (also related to Elon Musk’s tweet) during a previous period. Thanks to the determinism in price development, we can predict the beginning of the next large Dogecoin pump most probably on 27 November 2021. This pump should be supported by Elon Musk’s tweet, as well.
ISSN:2729-8213