Can Dogecoin’s price continue to soar despite a marketwide correction?
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.
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.
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.
Disclosure: The author owns a range of cryptocurrencies at the time of writing