Can Dogecoin’s price continue to soar despite a marketwide correction?

Posted: 19 April 2021 2:45 pm
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Since the start of 2021, Dogecoin's value has soared by a staggering 5000%

  • On April 16, Dogecoin's total exchange trade volume surpassed that of Ethereum's.
  • Social media engagement related to Doge has continued to hover around its all-time-high value.
  • Doge's ongoing price action seems to be driven, in large part, by American investors.

After having stayed range bound between AUD $0.65 - AUD $0.90 since the first week of February, Dogecoin has been on an absolute tear price-wise.

Between April 13 and 16, the value of the cryptocurrency surged from $0.07 to a whopping AUD $0.52, showcasing a growth of more than 450%. At press time, DOGE is trading for AUD $0.43.

How to buy Dogecoin

Launched all the way back in 2013, Dogecoin has been one of the most intriguing and puzzling projects in the market. For example, just a few days back, the currency was able to eclipse Ethereum's total exchange volume by a factor of 100%, which is quite remarkable especially when considering Ethereum has a total market capitalisation of AUD $336+ billion.

Is Dogecoin's rally being driven by American investors?

At its heart, Doge is a meme coin that relies quite heavily on continued social media hype in order for its value to increase. On April 16 — the day when Bitcoin and Dogecoin hit their all-time highs respectively — data on Google trends highlighted that while most cryptocurrency traders around the globe had their eyes set on Bitcoin, American investors were focused on pumping Dogecoin.

Crypto search trends by nation

Furthermore, data released by crypto analytics firm The Tie also shows that the total volume of tweets pertaining to DOGE tends to go down quite heavily whenever US investors are sleeping, with rates picking up once again around noon Eastern Standard Time (EST).

Support for Doge continues to climb

Following its most recent rally, support for Dogecoin climbed to its all-time highs on Reddit, with the r/dogecoin community adding an insane 145,859 weekly subscribers within a span of just seven days. Not only that, the number of members who joined the r/CryptoCurrency community also jumped up quite tangibly, with a total of 86,838 new subscribers joining the subreddit.

That being said, over the last 48 hours, the Doge's rally has somewhat plateaued, with the currency sliding down to the $0.26 mark yesterday before rising once again. As a result of this bearish price action, the currency's social media engagement also declined.

Interested in cryptocurrency? Learn more about the basics with our beginner's guide to Bitcoin, dive deeper by learning about Ethereum and see what blockchain can do with our simple guide to DeFi.


Disclosure: The author owns a range of cryptocurrencies at the time of writing

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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