As of January 29, 2021, the price of Dogecoin had risen by ~370% over a 24-hour timespan. During this period, the digital assets rally extended to ~ 613% before seeing a sharp decline. As investors enter the weekend, Dogecoin has experienced some selling pressure following the parabolic moves. Dogecoin currently trades at $0.02519 and is the 17th largest cryptocurrency by market cap. It is important to note that Dogecoin was created as a joke in a dorm room. Despite the nature of its founding, investors all over social media continue to pump the digital asset and believe it can reach $1.00 / coin.
Dogecoin Sudden Rise In Price
The price of Dogecoin had been relatively stable according to the Dogecoin chart for the past few weeks. However, starting around January 28, the price suddenly woke up. It was certainly a welcome boost to Dogecoin investors that have been holding the asset for a while.
How A Viral Reddit Movement Caused The Price To Spike
Recently, Redditors managed to bring down a hedge fund that had shorted GameStop shares. A group on Reddit called WallStreetBets convinced its members to pump the price of the company’s shares, which caused one major hedge fund to lose billions of dollars. The price pump initiatives went viral and funneled into the crypto space.
A Reddit forum called SatoshiStreetBets featured numerous posts in the past 24 hours calling for members to pump the price of Dogecoin. Followers of the forum decided to take up the challenge and began pumping the price of Dogecoin. Users egged each other on, calling for the price of Dogecoin to reach $1.00. For hours, starting on January 28, 2021, members of the forum flooded it with memes of a Shiba Inu, which is the dog that inspired the creation of the Dogecoin.
Even Elon Musk got in on the hype when he tweeted a fake image of a magazine cover featuring a dog with the “Dogue” instead of Vogue. It is not the first time Musk has highlighted DOGE on his Twitter handle. On December 20, 2020, at the start of the massive BTC rally, Musk tweeted “One word: Doge.” At some point, the SpaceX CEO temporarily updated his Twitter bio to state that he was the former Dogecoin CEO.
Besides the price increase, trading volumes of the coins had grown by over 2,200% in the past couple of days. As we enter the weekend, the bullish momentum seemed to halt.
At the time of this article, Dogecoin is currently valued at $.024 and has declined ~ 45.7% over the last 24 hours. On January 28th, Visionary Financial mentioned that Dogecoin momentum was heating up. After seeing unprecedented gains, Dogecoin became the 7th largest digital asset by market cap, passing Chainlink, Litecoin, Bitcoin Cash, and others. We also remind you that unlike Chainlink and other large-cap cryptocurrencies, Dogecoin was created as a joke. This goes to show the craziness in crypto markets last week. Following Dogecoin’s sell-off over the last 24 hours, it has now moved back down to the 17th largest cryptocurrency by market cap.
17 hours later, #dogecoin has ripped
~ 250% higher. Unlike the #stock market, #crypto markets don’t close. A lot of people pulling all-nighters here 🔥🚀🔥 #DOGE https://t.co/CEbgi70t5X
— Visionary Financial (@VisionaryFinanc) January 28, 2021
Will Dogecoin Ever Hit $1
As we all know by now, crypto markets are another breed. Dogecoin becoming the 7th largest crypto a day ago is a perfect example. Could Dogecoin ever hit $1? Technically yes, but the chances are slim, here is why. In order to hit $1, Dogecoins market cap would need to be about $128 billion. At the time of this article, Dogecoins market cap is $3.4 billion. It would take unprecedented amounts of buying to reach a market cap of $128 billion. It is hard to believe that just retail investors could make that happen. If institutions were involved in the buying, then it could be a different story. Also, if Dogecoin was at $1 right now, it would be larger than Ethereum. Given the value in Ethereums infrastructure, it is hard to believe this would come to fruition. Crypto is the wild west though, so don’t take this with a grain of salt.
DOGE Started As A Joke
When Dogecoin was initially created, the creator had intended it as a joke. They even named it after a popular meme at the time, which was represented by a smiling Shiba Inu. Creators of the Dogecoin intended it as a parody of the raging popularity of Bitcoin in 2014, which had hit levels never seen before.
However, the crypto community did not view it as a joke. Various people took it seriously and it was even used in transactions worth hundreds of thousands of dollars at the time. For instance, in 2014, Matt Thompson announced that he would accept fiat or Dogecoin for his home, which was valued at $135,000. Soon the crypto community took notice and Dogecoin has continued to thrive since then.
Social media users led the current price pump of Dogecoin. While there is no new development concerning DOGE, users have been working collectively to raise its price. It is always important to know the risk involved in investing in digital assets like Dogecoin. The prices can fall just as quickly as they initially rose!
Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the crypto currency they discuss. The information and content are subject to change without notice. Visionary Financial and its affiliates do not provide investment, tax, legal or accounting advice.