Dogecoin’s impressive rally in 2021 seems to have come to an abrupt end with prices tumbling down at an alarming rate. Dogecoin’s value has fallen by a whopping 26.4 percent within the last 7 days.
This places the 13th most popular coin firmly in a bearish market having met the criteria set by industry experts.
At the start of the week, Dogecoin was trading at $0.06247 and it currently trades at $0.05307 as of 17th February 2021. This comes at a time when crypto markets are posting serious gains on the back of a Bitcoin rally which has seen the BTC trade above $50k.
Dogecoin: The Joke That Meant Serious Business
Dogecoin was invented by software engineers Billy Markus and Jackson Palmer with the intention to create a fast payment system and that wasn’t boggled with traditional banking fees. Originally created as a joke, Dogecoin went mainstream within a few years with the logo of the Shiba Inu dog being an instant hit with traders.
In early 2021, a series of tweets and memes from Tesla’s CEO, Elon Musk possibly triggered a price rally that saw Dogecoin rise by over 1,000 percent. Several celebrities have also indicated a serious interest in buying and holding Dogecoin. Snoop Dogg, Mark Cuban, and Gene Simmons have all tweeted their intention to purchase the fast-rising altcoin.
On The Flipside
BTC crosses the $50,000 for the first time as massive institutional buy-in begins. Similarly, the second-largest crypto by market cap, Ethereum (ETH) has hit a new all-time high at $1,870, data from CoinMarketCap shows.Will Dogecoin (DOGE) Ever See Another Price Rally Again?
The founder of Castle Island Ventures, Nic Carter in an interview with CNBC has warned that investors should be wary of investing and speculating in an asset like Dogecoin with no real purpose. The crypto Trader found it strange that Tesla’s CEO Elon Musk could raise support for an asset like Dogecoin.
Similarly, Charles Hayter the CEO of Cryptocompare told Marketwatch that with assets like Dogecoin, extreme caution should be applied. “People are moving markets en masse and are playing the greater fool with each other without understanding the ramifications or their own psychological limitations,” he said.
With warnings by industry experts and the fact that Dogecoin has an endless supply of coins of up to the thousands may cast a large shadow on the coin. Furthermore, price rallies cannot always be triggered by memes and cryptic tweets.
If Dogecoin is going to have new highs, it will have to experience organic growth which would come from strengthening its systems.
However, users of popular Reddit forum’s chat room, SatoshiStreetsBets have expresses a firm belief that the Dogecoin’s value would rise to $1. Currently, it trades at $0.05307, and its market capitalization seats at $6,744,191,546.46. Only time can tell if we will see a repeat of the bullish run of early 2021.
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