Dogecoin rally continues with chatrooms abuzz for ‘Dogecoin Day’

imageCryptocurrency News3 hours ago (Apr 20, 2021 13:24)

By Samuel Indyk – Dogecoin continues to hold onto gains and briefly traded above $0.42 as a buzz on social media and chatrooms keeps the price elevated.

The often-mocked cryptocurrency has risen from a low of around $0.06 at the beginning of April to its new record as traders celebrate ‘Dogecoin Day’.

‘Dogecoin Day’ has trended on Twitter today, 20th April, or 4/20 in US date format, a day that is often celebrated by Cannabis smokers. Some fans of the cryptocurrency are targeting getting the coin to $1.  

In the last week, the price of Dogecoin has risen by over 450%.

The move has echoes of the GameStop (NYSE:GME) craze seen in January this year that saw shares rally from a low of $19 at the start of the year to a high of $483 less than a month later.

“Dogecoin has bounced higher, fueled yet again by chatter across internet forums, with influencers pushing the crypto currency higher,” said Hargreaves Lansdown (LON:HRGV) senior investment and markets analyst Susannah Streeter. “As we saw with the GameStop frenzy earlier in the year, traders have once again adopted a game mentality, trying to propel the price higher using hashtags and rallying cries on internet forums.”

As was the case with GameStop, the gains in Dogecoin are not expected to last forever. The memecoin, which is now the fifth largest cryptocurrency, has a market cap of around $50bln. That’s larger than UK bank Barclays (LON:BARC).

“Investors should be extremely cautious about getting caught up in this herd mentality because Dogecoin is very much a speculative bet whose valuation has no reliable basis,” Streeter added.

“Demand has come from traders trying to ‘game’ the system and others hoping to benefit from future price rises rather than use the coins as a means of exchange.

“Predicting the point at which demand subsides and prices begin to fall is very difficult, if not impossible and people risk getting their fingers seriously burnt.”

Dogecoin rally continues with chatrooms abuzz for ‘Dogecoin Day’

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Please enter your comment!
Please enter your name here