None of the predictions suggested that the Dogecoin price would be able to update the all-time high. What caused such a sharp surge?
Dogecoin – what is it?
To begin with, let’s leave aside the Dogcoin forecast and try to understand the history of the cryptocurrency.
The project was conceived as a joke in December 2013. DOGE is the result of collaboration between two engineers:
· Billy Markus of IBM;
· Jackson Palmer of Adobe.
It is worth noting that this asset is even older than ether and was conceived as a playful response to bitcoin, which at that time had existed for five years.
In those days, various memes were very popular on the Internet; one of them depicted a Shiba Inu dog, affectionately called Doge. The photogenic dog appeared in photographs with colorful captions that often didn’t make sense.
The Dogecoin price is subject to dramatic ups and downs. A day after the first spike in January 2021, Dogecoin fell to $ 0.0228, losing two-thirds of its value. The investors who bought it ultimately suffered significant losses. The most optimistic forecasts for Dogecoin assume a similar development of events in February 2021 with a second fall to the bottom: until the beginning of 2021, the value of the coin fluctuated around the $ 0.01 mark.
It is possible that the Dogecoin rate has reached its maximum this year. This largely depends on the results of the PR campaign in social networks. In particular, users of the TikTok social network have already become interested in an unusual cryptocurrency, who expect Doge quotes to reach $ 1. Last summer, a flash mob was launched on the social network, which involved the purchase of “memcoin” in order to accelerate it to $ 1. One of the challenges said:
“Dogecoin is practically worthless. At the same time, there are 800 million TikTok users. If everyone invests $ 25 and the Dogecoin rate reaches $ 1 per coin, it will be possible to earn $ 10,000. “
Such stuffing could be called quite harmless, but it is worth noting that there are signs of manipulation and pumping of an asset with the aim of further dumping. At that time, in order to achieve this goal, the cryptocurrency had to rise in price by 43478%.
The question arises, what predictions on DOGE does Musk himself make and why he is so interested in this particular coin. The answer is not to be found in the billionaire’s tweets. In one discussion on the Clubhouse app, he stated:
“Sometimes I joke about Dogecoin, but it’s actually a joke.”
The problem is that his tweets are really impacting the market. A recent study showed how trading volumes and quotes surged after Tesla’s CEO tweeted about cryptocurrencies in 2021. The results were simply stunning:
1. Each of the six cases carefully studied by the Blockchain Research Lab saw a surge in activity.
2. The billionaire’s interest may also have a downside: in 2021, the Dogecoin rate may collapse if Elon Musk suddenly writes something negative about DOGE.
In general, the buyer needs to be careful, because the altcoin at first glance looks comical and attracts attention with its dizzying leaps, but do not forget the adage:
“You have to be crazy to be bitten twice by the same dog.”