85% Dogecoin rally shows Wall Street Bets aren’t done with DOGE yet

85% Dogecoin rally shows Wall Street Bets aren’t done with DOGE yet

After gaining the spotlight due to a 980% pump on Jan. 28, Dogecoin (DOGE) briefly entered the top 10 ranking by market capitalization for the first time since 2015. Once the massive pump lost momentum and traders quickly took profits, it seemed that investors would move on past the meme-based cryptocurrency and find something else to invest in. 

The pump initially started when exchanges prevented retail traders from buying more GameStop and AMC stock on Jan. 28. Fueled by the Reddit discussion group r/Wallstreetbets, the army of investors turned their attention to silver and a selection of ‘cheap’ cryptocurrenceis.

On Jan.28, Twitter user “WSB Chairman” asked, “Has Doge ever been to a dollar?” to his 750,000 followers. That was enough to trigger the monster rally, despite Dogecoin having no protocol upgrades or developments since 2015.

85% Dogecoin rally shows Wall Street Bets aren’t done with DOGE yet
DOGE/USDT 1-hour chart. Source: TradingView

The 68% retracement that followed the peak at $0.087 resembled Bitcoin’s (BTC) sharp drop after the December 2017 crash, except this time around, instead of 50 days, it took only 24 hours.

Multiple social media influencers and streamers expressed their discontent at buying the top, an indication that the momentary speculative frenzy had passed. After spending most of Jan. 30 and Jan. 31 hovering around $0.03, DOGE managed to produce another 80% pump in less than three hours.

It’s almost impossible to find the exact trigger for those events, as there are multiple social networks, including private Telegram groups and trading signal apps.

Reddit’s r/SatoshiStreetBets currently has 213,000 active users and following DOGE’s breakout a meme-post by user Woke_AF_Populist quickly climbed to its most upvoted list.

85% Dogecoin rally shows Wall Street Bets aren’t done with DOGE yet
Wall Street Bets’ crypto sub-Reddit. Source: Reddit

There seems to be endless support from the Dogecoin fanbase, including Tesla’s CEO and founder Elon Musk. The lack of a concrete use case for the meme-coin certainly raises the question of whether members of r/WallStreetBets will jump ship from traditional markets and embrace the generally unregulated ethos of the cryptocurrency sector.

85% Dogecoin rally shows Wall Street Bets aren’t done with DOGE yet
Dogecoin price vs 30 day average Tweet volume. Source: TheTie

Regardless of the outcome, from now on, measuring social activity will become a norm instead of an alternative indicator.

author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Title: 85% Dogecoin rally shows Wall Street Bets aren’t done with DOGE yet
Sourced From: cointelegraph.com/news/85-dogecoin-rally-shows-wall-street-bets-aren-t-done-with-doge-yet
Published Date: Mon, 01 Feb 2021 01:40:12 +0000

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Wayne Roberts

Wayne Roberts – Business News   I am Wayne Roberts, I have done my bachelor’s in English literature, and further on I did my master’s in business. My most preferred genre of writing is business and finance. I have been writing from the past 5 years about articles, web content, and blogs. In my career and education, I like to play along with work. I have also been a teacher in the past for 4 years. I use to teach business and technical writing in a very famous university. However, most recently I am working as an instructor, designer, and training writer. I enjoy socializing a lot. I am a very big extrovert when it comes to my nature. A part of all this I enjoy exploring the world and traveling make me happy.

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