Dogecoin price soared about 20% in a single day last April 28. Analysts attributed its price hike to the Celebrity tweets made by Elon Musk and Mark Cuban. Both tweeted their support to the meme-inspired cryptocurrency.
Last April 28, Dogecoin’s price broke out of its immediate resistance bringing it to increase about 20% within the day. Some investors warned of an impending correction as this surge was too fast and too soon that marks a bubble. Analysts attributed the surge to the celebrity endorsements on Twitter by Elon Musk and Mark Cuban.
The meme-inspired cryptocurrency hit the all-time-high price of over 44 cents almost 2 weeks ago. The investors’ profit-taking brought back the price to around 25 cents, then proceeded with a correction for almost a week. And when Elon Musk and Mark Cuban tweeted their support for Dogecoin last April 28, the price soared by 20%. The price closed at about 32 cents and is resting within that range.
It may sound funny that dogecoin started with just like a joke in 2013, says Ryan Browne of CNBC. But now, it has grown and becomes the sixth-largest digital coin with almost $42 billion total market value. It takes its branding from the “Doge” meme, which portrays a Shiba Inu dog together with the nonsensical phrases.
Elon Musk is known to be behind it, as Dogecoin’s price often spiked when Musk gives a tweet about it. The report said that Musk named it as one of his favorite cryptocurrencies. Musk is a known supporter of bitcoin as well. A few months ago, Tesla bought $1.5 billion worth of bitcoin and recently accommodated bitcoin as an alternative mode of payment.
The tweets from Elon Musk and Mark Cuban
On its Twitter last April 28, Musk simply tweeted: “The Dogefather SNL May 8”. This is about his frequent tweets on dogecoin and his planned appearance on Saturday Night Live next week. Joining him in tweeting about it is Mark Cuban, the owner of the basketball team Dallas Mavericks. Cuban was making several posts about it this week. Last Monday, he said that his NBA Team was about to finish 6,000 dogecoin transactions in April.
When asked why he supports dogecoin, Cuban said that it is one coin that people use for transactions. As people spend their Doge, it translates to more businesses accommodating it.
Dogecoin has attracted several retail traders who are using the Robinhood platform. Supporters of the token have requested Robinhood to introduce a feature allowing traders to withdraw their investment in different cryptocurrencies. In response to the request, Robinhood’s co-CEO Vlad Tenev said that they are working on such a request.
The surge of its price caused the investors to be wary as they see this to be just hype. People are buying it, not because of its intrinsic value, but because they hope others will join the bandwagon. And will consequently bring the Dogecoin’s price higher. When that happens, they will take profit and enjoy the quick profit, says Freetrade analyst David Kimberley. But when more people do this, the bubble will eventually burst. And you will be left behind with loss if you are not able to get out in time.