It is safe to say that Doge has had an interesting year in 2021. The coin that everyone thought was down and out came back to be one of the top-gaining coins of the current bull market. Sure, the price increase had everything to do with Elon Musk shilling it on Twitter. But Dogecoin has had a tremendous run regardless.
The price of the coin remained flat for the better part of three years. Trading at under a cent. To everyone, Doge had seen its end. There were barely any talks about Doge in the market at all. With people focusing their attention on better-known coins like Bitcoin and Ethereum. That was until billionaire Elon Musk turned his attention on Doge.
The Rise Of Doge
Back in January, a tweet from Musk that simply said Doge went viral. Mere minutes later, the price of the coin had gone up. With the price increase, came investors FOMO-ing into the market.
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Amidst the frenzy, there were speculations that this was simply a pump and dump scheme that would burst as soon as it started. But that would not be the case.
With every tweet about Doge from Musk, the coin price just went up. People faithfully followed the billionaire’s tweeting patterns to buy and sell the coin. Soon, a coin that was trading at less than a cent a couple of days before was trading at 80 cents. More than 10,000 percent gains from its low.
Debates were started about the legality of the shilling. But it didn’t seem that Elon had broken any laws.
Dogecoin recovers after crash | Source: DOGEUSD on TradingView.com
This gave the rise to meme coins. An ode to meme stocks. A phenomenon that started with GameStop on Reddit.
Investments in meme coins are made based on the social media buzz behind that coin. And what better buzz than the one created by one of the richest men on the planet.
Subsequent Crash And Recovery
Over the past five months, Doge has had its ups and downs. Mostly following the price of bitcoin as altcoins are wont to do. But it is no secret that the buzz has started to die down.
With a lot of investors buying at the top or near the top, the subsequent crash has left a lot of investors in losses. The “Dogefather,” as Musk is fondly called, seems to have abandoned the coin.
There has not been a tweet from Musk regarding Doge since April. And without him, the coin has been in a continuous downtrend. Investors in the coin have suffered massive losses in the market.
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People are calling for the “Dogefather” to help save the coin. But it would seem help is not forthcoming.
The coin crashed to 16 cents. A price point the coin had not been in since April. But the coin made a great recovery. Going up 40% in one day. A lot of Doge enthusiasts are still holding out hope that coin will replicate the massive run in January.
Despite people believing the bubble would burst on Doge and it would come crashing down, the coin has held its own in the market. Currently trading at 24 cents as at the time of this writing.
Featured image from FullyCrypto, chart from TradingView.com