Above all, the DOGECOIN meme’s cryptocurrency is trading at record-high prices today as crypto bulls push the token towards the elusive £0.72 ($1) goal; however, as long-time DOGE holders celebrate the “meme coin’s” success.
By the same token, some analysts have warned a major sell-off could be lurking just around the corner.
Dogecoin is trading for £0.253854 ($0.350337) per token and is up more than 160 percent in the last 24 hours.
All in all, This is not the first time that dogecoin has experienced a crazy rise. Like many cryptocurrencies, it tends to experience volatile price fluctuations. Above all, Earlier this year, the dogecoin started to ride a comeback, which is skyrocketing on the back of the enthusiasm of a Reddit group called SatoshiStreetBets.
Like the WallStreetBets subreddit, which helped fuel a rally in GameStop stocks in early 2021. SatoshiStreetBets aims to push cryptocurrency prices up.
Dogecoin climbed again last week, hitting 10 cents a coin for the first time on Wednesday. It has increased 300% in the past seven days.
Friday, a Reddit user posted a photo of their dogecoins holdings on the Robinhood investment app.
“Hey guys, I just became a Dogecoin millionaire,” the user said, posting a balance of $ 1,081,441.29 on his account.
Dogecoin has generated frantic interest from Robinhood users. On Thursday, the US online broker said a “major failure” in its crypto trading function after facing “unprecedented demand.” The feature is now back online, Robinhood said.
Some reports attributed the latest dogecoin rally to support the token based on your CEO Elon Musk’s memes. Musk posted several tweets about Dogecoin, which helped drive up its price.
On Thursday, Musk posted a cryptic tweet saying, “Doge is barking at the moon,” presumably about the popular crypto slang phrase “to the Moon.”
The billionaire called dogecoin his “favorite” cryptocurrency and “people’s crypto.” Musk also came out as a bitcoin supporter, with his electric car firm buy $ 1.5 billion worth of cryptocurrency earlier this year.
Dogecoin is creating a bubble.
Cryptocurrency experts are shocked
In particular, celebrities and tech moguls have publically endorsed the token, thrusting it into the spotlight.
For example, South African billionaire and SpaceX chief Elon Musk has frequently been tweeting about the token and has even promised to put DOGE on the Moon.
The surge in the price of Dogecoin has raised fears of a possible bubble in the cryptocurrency market. Some investors are already viewing bitcoin as a speculative bubble – the world’s most popular digital coin has more than doubled since the start of 2021.
“The rise of Dogecoin is a classic example of a crazier theory at play,” David Kimberley, an analyst at UK investment app Freetrade, told CNBC.
“People buy cryptocurrency, not because they think it is of significant value, but because they are hoping that others will pile in, drive up the price and then they can sell and earn. quick money. “
But, Kimberley added, “When everyone else does that, the bubble has to burst finally, and you’re going to be left out if you don’t get out on time. And it’s almost impossible to tell when that’s going to happen.”
“This is doubly the case in crypto markets, where a small group of players often own a large portion of the total number of ‘coins’ in circulation. This means that it only takes one person to empty all their holdings for the entire market to be tanked.
The Bottom Line
Dogecoin cryptocurrency is on moon
Like any other cryptocurrency, the price of Dogecoin will change on a day-to-day basis. Dogecoin in particular can be exceptionally volatile, as the price of the cryptocurrency remains consistently low. Keeping up to date with the current price of DOGE can help you determine the best time to place your buy and sell orders.
Dogecoin can be a good investment. Its transfer speed is much faster than bitcoin. The community is strong as many Dogecoin users are in it to have fun. And because the mining period is over, you don’t need to worry about hyperinflation like other cryptocurrency coins.
Suppose you decide to invest in Dogecoin. In a word, We recommend using it as only a minor percentage of a highly diversified portfolio.