Predicting Doge coin prices

Dogecoin went from being worth less than a penny to 0.318 as of today. But what has been bringing so much attention to these meme coin, and should Doge be a coin to invest in?

Elon Musk, started tweeting and paying attention to Doge, early January 2021. With simply tweeting he was able to get Doge to a high of 0.7 cents. After Musk's appearance during Saturday Night Live however, Doge's value started to drastically decrease.

The goal of this project is to try to use historical data of Doge in order to predict the future of this meme coin, using 3 different predictive models. We will also use sentiment analysis of Twitter data on Doge to see if we can use that in order to make our predictive models more accurate, since Doge is very volatile and social media seems to have an impact on its prices.

Overview

Cryptocurrency is a form of payment that can be exchanged online for goods and services. Many companies have issued their own currencies, often called tokens, and these can be traded specifically for the good or service that the company provides.

Cryptocurrencies work using a technology called blockchain. Blockchain is a decentralized technology spread across many computers that manages and records transactions. Part of the appeal of this technology is its security.

Dogecoin is a cryptocurrency that started as a joke in 2013. It is a satirical homage to bitcoin, designed to serve no real purpose other than generating a few laughs.

Data Set

Yahoo Finance Data has been a great source that provides people with historical and live data of stocks and cryptocurrencies. This is where the data set will be obtained to get Dogecoin, Bitcoin, and Ethereum historical data sets.

From the Yahoo Finance Data we will be using the Open, Close, and Volume Columns.

We will also be utilizing Twitter Data.

Previous models have been made where prediction of cryptocurrencies such as Bitcoin, Ethereum and Doge coin.
We will try to make these predictions a little bit better for Doge using twitter data analysis.
- We will use data from Twitter to check the sentiment of it during that day, and if it is positive we will add 1 to our data from Yahoo Finance Data, negative -1 and neutral 0, and we will re do our models having them put into factor the sentiment of doge during that day and see if it makes our model better, worse or no difference,

Hypothesis/ Research Questions

- Can we accurately predict the future price of DogeCoin using different time series prediction models?
- How much influence does social media have on the price of DogeCoin?
- Is there a correlation between Dogecoin, Bitcoin, and Etherum?
- How volatile is Dogecoin compared to the well established coins Bitcoin and Etherum?
- If we factor in the sentiment analysis of tweets into our predictiion models would that make our predictions of Doge prices more accurate?