May 8 ‘day to watch’ for Dogecoin amid warning DOGE can suffer XRP style crash

May 5, 2021 Coin Telegraph

Elon Musk's upcoming TV appearance could ultimately spell a Dogecoin Doomsday, one analyst says as price action mimics XRP in 2018.

Dogecoin (DOGE) is surging and Bitcoin (BTC) is limping, but one analyst predicts that this week will burst the DOGE bubble.

In a series of tweets on May 4, popular Twitter account lowstrife highlighted similarities between Dogecoin and XRP among warning signs that “the end” is nigh.

"Final push

As Cointelegraph reported, DOGE/USD has continued to climb this week, reversing previous losses to take out its previous sky-high peak of $0.47. Year-to-date, the pair is up 7,000%.

With major proponent Elon Musk due to make his promised appearance on Saturday Night Live as “The Dogefather” on May 8, however, that date is quickly becoming a line in the sand for the meme-based altcoin’s fortunes.

Musk, who has made headlines throughout the year for his alleged adoration of Dogecoin, has likewise fuelled acceptance of its gains as being based not on merit, but on the viral effect of memes.

Why tf does @elonmusk going on Saturday Night Live create the scenario to push DogeCoin to $1.00. Somebody please help me understand this logic?
— Jason A. Williams “Parabolic Guy” (@GoingParabolic) May 5, 2021

Should the tide turn, however, bagholders could face the kind of losses reminiscent of those which followed the end of the 2018 “alt season.”

For pseudonymous cryptocurrency trader Lowstrife, signs of apocalypse are already visible on the spot market.

“Each of Doge's major rallies this year has been smaller and less aggressive. What took 18 hours at first has been ongoing for 2 days now,” Lowstrife commented.

“I suspect this is the final push before it's all over for good. May 8th is the day to watch.”

*DOGE/USD 1-day candle chart (Bittrex). Source: Tradingview*

Echoes of XRP's longstanding all-time highs

The latest phase of the DOGE miracle is conspicuously similar to the final push by XRP in 2018 before XRP/USD hit its still-valid all-time high of $3.20. Subsequently, the pair slowly faded to a low of $0.14 — a loss of 95.6%.

*XRP/USD 1-week candle chart (Bitstamp). Source: Tradingview*

The current situation is all too familiar for newer market participants, too. The GameStop debacle, in which individual traders pushed the price of stock to crush short hedge funds, provided fertile ground for a copycat move in cryptocurrency.

Unlike stocks, there are no ways for regulators to exert pressure on traders or restrict access to the asset itself, other than by forcing trading platforms to do the work for them.

Explaining the phenomenon, Adam Back, CEO of Blockstream, said that the DOGE bullrun was an example of a casino-like market.

“Like a GME short-squeeze. Not because the market agrees it has value, but actually opposite because it's rightly shorted as being devoid of value,” he argued on Twitter.

“The more of a joke, easier to pump, whatever people will rally around a group pump and dump casino rug-pull.”

Dogecoin, the leading indicator for alt season?

May 4, 2021 Coin Telegraph

Altcoins

The eight-year old altcoin seems to be a bellwether for altcoin rallies every time it pumps.

Dogecoin (DOGE) has been the poster child of altcoins for a very long time, particularly as it's been around since 2013, making it one of the oldest cryptocurrencies in existence. The inflationary meme-coin quickly became synonymous with wild price pumps due to its small nominal value and concentrated holdings.

Doge starts altseason by the way in case you've forgot.
— BIG DOG (@MoonOverlord) April 16, 2021

Such unprecedented short-term price rallies history caused some investors to use DOGE price as a leading indicator for an altcoin season.

But this probably does make some sense. After all, Dogecoin is nothing more than a meme-based coin. There has been no development activity over the past couple of years, and not that many of its users run a full node.

*Dogecoin historical pumps since 2017. Source: TradingView*

Also, take notice of how incredible price moves have been the norm rather than an exception for Dogecoin in the past four years. There have been 16 weekly performances higher than 30% and six of those presented 100% or higher gains.

If major Dogecoin holders sell most of their coins, it will get my full support. Too much concentration is the only real issue imo.
— Elon Musk (@elonmusk) February 14, 2021

To this day, the top 693 addresses keep 79.2% of the total DOGE in circulation. This astonishing statistic has even been a large source of criticism by Elon Musk, the CEO of Tesla and SpaceX. It is worth highlighting that the most recent price spikes have been directly linked to Musk's memes and tweets revolving around Dogecoin.

However, for one to claim that Dogecoin is effectively an altcoin season indicator, there must be evidence of such pumps preceding the broader market positive performance.

*July 2020 total altcoin market cap vs. Dogecoin, USD. Source: TradingView*

On July 7, 2020, DOGE posted a 73% gain in less than 36 hours. While the effect didn't last for more than three days, altcoins did begin to surge in value a couple of weeks later. The altcoin market capitalization rose from $105 billion to $130 billion, which is a 24% increase in just 10 days.

*Nov. 2020 total altcoin market cap vs. Dogecoin, USD. Source: TradingView*

Meanwhile, the November 2020 pump tells a different story as DOGE followed the path of the remaining altcoins. Moreover, no altcoin season followed over the next weeks as market capitalization stabilized below $210 billion.

*Early 2021 total altcoin market cap vs. Dogecoin, USD. Source: TradingView*

On the other hand, the early-2021 incredible 182% DOGE pump that took place over the course of two days did signal an altseason. Some 36 hours later, the altcoin market cap initiated a 50% rally, boosting it to $340 billion.

An even more substantial effect took place on Jan. 18, as the meme-coin hiked over 1,000%. Three days later, the altcoin market cap started a 60% rally to $560 billion.

However, the most recent activity might provide different interpretations as the altcoin rally began some three weeks before Dogecoin aimed for new highs.

*April 2021 total altcoin market cap vs Dogecoin, USD. Source: TradingView*

Therefore, considering the five pumps analyzed, there have been three pieces of evidence of the Dogecoin pump preceding a broader altcoin rally. However, this incidence ratio might be enough for most adventurous traders.

It is worth noting that comparing such findings with other major altcoins would be a good idea before concluding that the meme-driven coin is effectively a good indicator for alt season. If Dogecoin lives up to its fame amid an onslaught of positive headlines, then the new $0.61 all-time high is a presage of positive momentum for altcoins.

Meanwhile, VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for DOGE on April 29, prior to the recent price rise.

The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historic and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.

*VORTECS™ Score (green) vs. DOGE price. Source:* *Cointelegraph Markets Pro*

As seen in the chart above, the VORTECS™ Score began to climb on April 29 and reached a high of 72 before spiking to 77 again on May 3. It's worth noting that the VORTECS™ Score peaked roughly 12 hours before the price spiked 45% to a new all-time high at $0.61.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Dogecoin Nears All-Time Highs, Price Launches Higher After Elon Musk’s ‘Dogefather’ SNL Tweet

May 2, 2021 Bitcoin.com

New altcoin era? Dogecoin liquidations briefly surpass Bitcoin

April 24, 2021 Coin Telegraph

Coin Telegraph

Dogecoin liquidations briefly surpassed Bitcoin, indicating high demand for DOGE and the altcoin market.

Dogecoin (DOGE) saw more liquidations than Bitcoin (BTC) at one point on April 24. This shows there is a significantly high demand for trading the meme cryptocurrency even as Bitcoin and Ether (ETH) struggle to recover.

Various trends and metrics, such as social volume, trading volume, and liquidations in the futures market indicate that DOGE remains one of the most frequently traded cryptocurrencies in the global market.

*DOGE/USDT 15-minute price chart (Binance). Source: Tradingview.com*

Large liquidations mean DOGE is seeing genuinely high demand

Although some metrics, like the daily volume on small exchanges, is often exaggerated, futures market open interest and liquidations data is much harder to inflate.

According to Bybt.com, in the last 12 hours, over $44 million worth of DOGE positions were liquidated.

In comparison, Bitcoin saw $117.4 worth of liquidations, suggesting that the trading interest around DOGE remains relatively high.

*Cryptocurrency liquidations. Source: Bybt*

CoinMarketCap's data also shows that DOGE's daily trading volume across all exchanges is higher than most top cryptocurrencies

In the last 24 hours, DOGE recorded $11.5 billion in daily trading volume. In the same period, Cardano (ADA), Binance Coin (BNB), and XRP saw lower trading volume than DOGE despite having larger market capitalizations.

A large portion of the demand for DOGE could be coming from the influx of new entrants into the cryptocurrency market in the wake of the bull market.

A pseudonymous trader known as NYUU said that most of this friends in the past week bought cryptocurrencies.

Unsurprisingly, the cryptocurrencies that were purchased recently were XRP and DOGE. The trader said:

"Turns out, every single friend of my bought #cryptocurrencies this or last week. Mainly $XRP and $DOGE very close to the high. Everyone I tried to convince to buy 1-2 years ago and gave up - is in now. Not sure how much fresh money is left to enter..."

In addition to the rising demand for DOGE from new investors entering the cryptocurrency space, data from TheTie shows that the social metrics for DOGE are growing.

*30-day average sentiment vs. Long term sentiment (DOGE). Source: TheTie*

Social media volume often demonstrates authentic interest in a cryptocurrency on Twitter and other social media platforms across a prolonged period.

Will DOGE see a continued uptrend?

Analysts say that the cryptocurrency market consolidating before a possible new leg up is healthy.

John Street Capital, an analyst who focuses on cryptocurrencies, said:

"$BTC is still +75% YTD and given the froth in parts of the market with moves in $DOGE etc... consolidation is healthy before resuming the upward trend. It also lets new corporate / 'real money'

If Bitcoin and Ether continue to consolidate comfortably above $50,000 and $2,200, respectively, it could create a more favorable environment for smaller altcoins, like DOGE, to rally.

Dogecoin (DOGE) market cap hits $50B, surpassing ING and Barclays

April 19, 2021 Coin Telegraph

Dogecoin (DOGE) market cap hits B, surpassing ING and Barclays

Altcoins

Dogecoin price rallied more than 500% in the last ten days, resulting in a $50 billion market cap that eclipses ING, Barclays, and Credit Agricole.

The last ten days have been nothing short of impressive for Dogecoin (DOGE), which rallied by more than 500% to a new all-time high at $0.45. Even after a 15% correction, the powerful rally catapulted Dogecoin’s market capitalization above well-established financial institutions like ING, Barclays, and Credit Agricole.

The meme-driven cryptocurrency was pushed higher by multiple Twitter posts from Elon Musk, the CEO of Tesla and SpaceX, and the second wealthiest person alive. Musk is not the only billionaire businessman to support the cryptocurrency.

Whether or not there are fundamentals behind the meteoric price hike, Dallas Mavericks owner Mark Cuban has also publicly defended DOGE. The professional basketball team even accepts it for merchandise sales.

Is Dogecoin worth more than Citigroup or Morgan Stanley?

While the Dogecoin community constantly roots for the $1 target, many fail to acknowledge that the current 129.6 billion supply will grow by 20% in 5 years. Thus, $1 per DOGE would result in a $156 billion market capitalization, or double the current valuation of Binance Coin (BNB).

To show how outrageous the proposed $1 target is, there are currently 92 tradable assets surpassing a $156 billion market capitalization. Citigroup (C), Morgan Stanley (MS), Unilever (UL), and Shell (RDS.A) are all $150 billion market-cap companies, and therefore would be below Dogecoin if somehow its fan-base manages to push its value above $1.

*Assets with a $150 billion or higher market capitalization. Source: 8marketcap.com*

It is worth noting that institutional investors can open short positions and bet on a price decrease in those assets, whereas Dogecoin futures are not available for U.S-based traders. Neither are listed at CME nor BAKKT, meaning betting against DOGE is not an option for professional traders.

Inefficiencies will fade as markets evolve

As the cryptocurrency market grows, institutional-focused exchanges will offer altcoin derivatives, creating a more efficient market. Meanwhile, comparing Dogecoin market capitalization with more established banks provides distorted figures.

While some claim that new regulations are needed to avoid these inefficiencies, one must remember that Gamestop (GME) shares rallied over 860% in January.

Even though Gamestop was unable to generate a profit over the past six years, the sheer frenzy caused by social network coordinated investing drove its market capitalization above $24 billion, which is higher than the National Bank of Canada (NA.TO).

In theory, no intelligent investor would intentionally choose Gamestop over a bank that consistently generates more than 2 billion CAD per year in profits. Nevertheless, market inefficiencies will cause momentary distortions.

Similarly, Dogecoin investors might make history by reaching $1, but this valuation is unlikely to hold as institutional traders get a hold of shorting instruments.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Dogecoin at $0.44 embraces ‘literal moon’ ahead of Elon Musk SpaceX launch

April 19, 2021 Coin Telegraph

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Bitcoin

"Dogecoin Day 4/20" and a SpaceX rocket launch are two events fuelling DOGE/USD as year-to-date gains pass 7,500%.

Bitcoin (BTC) may be flagging, but one cryptocurrency could not be less fazed by the market downturn, hitting new all-time highs.

Dogecoin (DOGE), the altcoin based on a Shiba Inu meme, passed $0.40 for the first time on April 19, capping weekly gains of 400%.

New all-time highs keep coming for DOGE

The rags-to-riches moves by DOGE throughout 2021 have wowed pundits and left former bagholders weeping. Now, it appears that even a flash bear market cannot stop its moonshot.

Just seven days ago, DOGE/USD traded at $0.07. As Cointelegraph reported , year-to-date gains are now in excess of 7,500%, while the pair is up almost 18,000% versus the same date in 2020.

While this naturally beats the rises in Bitcoin, Ether (ETH) and others, the question now is what will happen next and whether an equally spectacular reversal is on the cards.

At the time of writing, DOGE/USD, meanwhile, traded at $0.36, already a considerable way below its all-time high of $0.445.

*DOGE/USD 1-hour candle chart (Bittrex). Source: TradingView*

All eyes on "Dogecoin Day"

SpaceX and its “technoking” Elon Musk may have the answer. On April 22, a flight is due to launch that Musk previously hinted would “put a literal Dogecoin on the literal moon.”

— Elon Musk (@elonmusk) April 16, 2021

Since his April Fool’s Day tweet, Dogecoin has seen engagement like never before, dwarfing even that which accompanied Musk’s earlier endorsements. Besides the hashtag "#DogeDay" trending in the United States on Twitter, data from Google Trends shows that “Doge” is in the process of being Googled more than ever. However, other social media metrics are suggesting that the craze may already fading on social media.

*Google search interest for "Doge." Source: Google Trends*

Another improvised red-letter day is April 20, or “Dogecoin Day 4/20,” which according to social media is allegedly when DOGE/USD will hit $4.20 per coin.

Amid the fervor, however, stood some voices of reason. Among them was trader Scott Melker, who told U.S. traders looking to book profits to be mindful of legal implications.

“If you believe that $DOGE (or another coin) is the future of money, please remember that the government views it as property and every single time you spend it it’s a taxable sale of the coin,” he warned.

“This is important. Buy something with crypto in the US = selling crypto.”

Bitcoin, meanwhile, could only yap at Dogecoin’s heels, down 0.7% on the day to stay close to $55,000.

Crypto Markets Lose Hot Air, DOGE and BCH Skyrocket, 46% Chance ETH Hits $2,600 by May

April 16, 2021 Bitcoin.com

Dogecoin doubles in a day as YTD gains hit 5,000% while Bitcoin price dips

April 16, 2021 Coin Telegraph

Bitcoin

Everyone's favorite meme cryptocurrency has delivered 12,600% gains in a year and likely created a string of millionaires.

Dogecoin (DOGE), the meme-based altcoin which has become a favorite talking point of Elon Musk, has doubled in 24 hours to hit all-time highs of $0.29.

DOGE leaves others in the dust

Cointelegraph Markets Pro and TradingView showed DOGE/USD outperforming other major cryptocurrencies by an order of magnitude on April 16.

In what appears an almost unbelievable move, Dogecoin has also become the eighth-largest cryptocurrency by market cap, surpassing Litecoin (LTC), Chainlink (LINK) and Uniswap (UNI) among others.

At the time of writing, a single DOGE traded at around $0.25. Gains on any timeframe remained beyond impressive — 80% on the day, 300% over the past week and year-to-date returns in excess of 5,000%.

Versus the same date one year ago, shortly after the pit of the brief 2020 bear market, Dogecoin is up 12,600%.

Reacting, it appeared that even professional traders had been caught by surprise.

"This is the first DOGE pump I have missed in years, but I still absolutely love to see it. Favorite asset of all time, changed my life in 2017. Happy for you guys who are in it, innit?" Scott Melker tweeted.

Turkey passes crypto transaction ban

As with altcoins more broadly, meanwhile, Doge's historic reversal of fortune came at the expense of Bitcoin (BTC) on the day, with the largest cryptocurrency seeing a forecast retest of previous all-time highs around $61,000.

Several tests of $61,000 support left the door open for further dips on Friday, bringing daily losses to around 2.8%.

Bitcoin's market cap dominance stood at 52.1%, also down noticeably in recent weeks as altcoins see their time in which some analysts believe will only reach a peak later this summer.

*BTC/USD 1-hour candle chart (Bitstamp). Source: Tradingview*

A ban on transactions by Turkey's central bank was tipped to have fuelled the loss of upside momentum, this being done due to possible "irrepairable" side-effects to the country's established fiat payment network.

"It is considered that their use in payments may cause non-recoverable losses for the parties to the transactions due to the above-listed factors and they include elements that may undermine the confidence in methods and instruments used currently in payments," Reuters quoted a statement as saying.

Also showing signs of a cooldown was Ether (ETH), which returned closer to $2,400 after seeing its own all-time highs above $2,500 the day before.

3 reasons Dogecoin is up 123% this week, hitting $0.10 for the first time

April 15, 2021 Coin Telegraph

3 reasons Dogecoin is up 123% this week, hitting alt=

Coin Telegraph

DOGE, the native cryptocurrency of Dogecoin, rose 123% in the past seven days as the altcoin market saw a resurgence in momentum.

The price of Dogecoin (DOGE) has rallied by more than 123% this week, hitting a new all-time high of $0.13 on strong technical momentum.

*DOGE/USDT 4-hour price chart (Binance). Source: TradingView.com*

It has been competing against Chainlink’s LINK for the top-10 spot, with both cryptocurrencies hovering at around $17 billion in market capitalization.

There are three major reasons why DOGE saw a steep climb over the past seven days. These include Elon Musk’s tweets, the resurgence of altcoins and the positive sentiment around crypto in general.

Altcoin market rallies strongly with positive sentiment

Throughout the past week, many of the “OG” altcoins, such as XRP, Tron (TRX) and Stellar (XLM), saw massive rallies following Bitcoin’s (BTC) upsurge to a new all-time high above $64,000.

XRP, for example, broke above $1.5 for the first time in over three years, showing that profits from Bitcoin and Ether (ETH) are possibly cycling into altcoins in the short term.

Kelvin Koh, a partner at Spartan Group — one of the largest DeFi-focused funds in Asia — explained that this trend happens periodically because quant funds trade the convergence between Bitcoin and altcoins.

Koh noted:

“The reason this happens periodically is because there are a bunch of quant funds out there that play the convergence trade between $BTC and a handful of liquid alts. Whenever there alts look cheap relative to $BTC, they pile in. When they look expensive, they rotate back to $BTC. No fundamentals involved so don’t try too hard to rationalize the moves. This strategy has proven effective over time and there are enough managers playing this that it becomes self-fulfilling and keep recurring.”

The general increase in the momentum of the altcoin market played a major role in fueling Dogecoin’s overall momentum throughout the past few days.

Technical traders have echoed a similar sentiment about the strong rally of altcoins over the past week.

Is the Altcoin market setting itself up for a dip in the short-term?

It's a possibility

But pull-backs from here would not only be a healthy development for Altcoins

But also a necessary one for many of them to confirm higher timeframe breakouts before further upside#Crypto
— Rekt Capital (@rektcapital) April 12, 2021

However, another well-known cryptocurrency trader Loma said that the fundamentals surrounding most altcoins haven’t changed.

Therefore, if traders trade altcoins that are breaking out based on technical analysis but disregard the technical aspect of it, there is a high chance of the trade becoming unsuccessful.

The trader explained:

“Friendly reminder that the fundamentals on most of these fossil coins are identical to what they were months or even years ago. As an altcoin trader, if you entered a trade off TA but disregard TA for FA somewhere in that trade, you’re more often than not.. fucked.”

Elon Musk tweets about DOGE

In addition to the technical momentum of altcoins, which directly fueled the uptrend of Dogecoin, Musk tweeted about DOGE on Thursday once again.

Musk wrote, “Doge Barking at the Moon” with a meme that hints at higher DOGE prices. The price of a cryptocurrency can easily skyrocket when a public figure or well-recognized influencer tweets about a less liquid altcoin, and this time was no different.

Doge Barking at the Moon pic.twitter.com/QFB81D7zOL
— Elon Musk (@elonmusk) April 15, 2021

Despite Musk’s affection for Dogecoin, Tesla has invested solely in Bitcoin, however, adding approximately 48,000 BTC currently worth $2.5 billion to its balance sheet while directly accepting BTC for its electric vehicles.

To the ‘literal moon’? Elon Musk SpaceX tweet gives Dogecoin a 35% liftoff

April 1, 2021 Coin Telegraph

Altcoin

Right on cue for April Fool's Day, Musk promises to "put a literal Dogecoin on the literal moon," but for hodlers, the resulting gains were anything but a joke.

It may be an April Fool's Day prank, but when it comes to meme-based cryptocurrency Dogecoin (DOGE), it hardly matters.

*DOGE/USD 1-hour candle chart (Bittrex). Source: TradingvVew*

Musk: SpaceX taking Dogecoin to "literal moon"

After a fresh tweet from Tesla CEO Elon Musk, DOGE/USD shot up 35% in minutes on April 1, hitting six-week highs.

Musk, newly dubbed the "Technoking" of Tesla, is known for his tongue-in-cheek Dogecoin publicity, and his antics on Twitter and in interviews have already succeeded in boosting the altcoin's price.

This time was arguably the most overt example of "memeing" a cryptocurrency to the moon, however, as Musk promised that his other company SpaceX would "put a literal Dogecoin on the literal moon."

SpaceX is going to put a literal Dogecoin on the literal moon
— Elon Musk (@elonmusk) April 1, 2021

Immediately, Dogecoin began rising, reaching a peak of $0.07 before cooling off but still retaining the gains.

Having began 2021 at just $0.004, DOGE's year-to-date gains as of April 1 stood at over 1,500%.

In a perhaps equally unlikely but genuine move, Latvian national carrier airBaltic announced this week that passengers can now book flights using DOGE along with several other altcoins. Bitcoin (BTC) has been accepted since 2014.

More than empty promises?

Musk, meanwhile, has found himself in hot water over his Twitter plugs, with reports emerging in February that the mogul was under investigation by United States authorities.

He is not the only one to fall foul of the establishment for doing so. As Cointelegraph reported , entrepreneur John McAfee was charged with a raft of offenses last month, among which were his daily showcases of various cryptocurrencies on Twitter.

However, it was advertising Dogecoin in particular that got him into trouble, he claimed.

The concept of clamping down on alleged market manipulation remains a sore point among many lay investors in light of the Reddit–GameStop debacle, which saw trading platforms prevent investors from transacting in a seemingly ad hoc fashion when their trading provoked heavy volatility.

DOGE price