DOGE – How the Meme Token Became the Rocket Token

What In The World Is Doge Coin? 

by Bogdan Giulvezan

Over the last 24 hours, the crypto space has been taken over by DogeCoin and its meteoric rise… and fall. Within the span of one day, DOGE exploded more than 1,000%, reaching highs of about 0.087 against the USDT on Binance charts. The coin has since retraced and is now trading around 0.042 against Tether, on the same Binance charts.

Most of the climb was triggered by Reddit users and specifically by the “Chairman” of a group called Wall Street Bets, who asked on Twitter “Has Doge ever been to a dollar?” The group’s main goal was to buy GameStop stock, betting against the massive Wall Street hedge funds who have been shorting it.

GameStop’s value skyrocketed to record highs (up to 600% rise), which prompted Robinhood app (and a few others) to restrict trading on it. However, trading remained open for hedge funds. This quickly triggered a response from Bitcoin and crypto advocates, saying that the crypto market is the only one that cannot be restricted. Even Elon Musk condemned Robinhood’s decision to ban retailers from buying GME (selling still allowed), while hedge funds are allowed to buy and sell at their own convenience.

DOGE/USDT Chart Analysis

After breaking the previous high at 0.0140, the dog-faced coin exploded to a high at 0.0875, but it quickly retraced back into 0.0500 – 0.0400 area. The pair is still trading way above its previous ATH (all-time high) but as we can see from the 4-hour chart below, it has erased more than half the gains.

This type of vertical movement is usually followed by a pullback (as was the case here) but given the amplitude of the initial spike and the factors that generated it, the next direction is hard to anticipate. It is possible to see the gains totally erased and price returned into the 0.0140 area but on the other hand, another ATH is not out of the question.

Let’s not forget that all this crazy movement was triggered by the tweet “Has Doge ever been to a dollar?” posted by a so-called “chairman” of a group of traders who were buying GameStop stock. With that in mind, we cannot simply read some technical indicators like the RSI or MACD to anticipate with accuracy the next move because another tweet, from another guy, may send DOGE to the dog pound or to the moon. The bottom line is: be careful if you buy or sell DogeCoin… and maybe watch Twitter for potential market movers.