Dogecoin rallied by over 85% overnight suggesting that Wall Street Bet’s crypto wing may not yet be done with DOGE. After the coin gained the spotlight as a result of a 980% pump on January 28, DOGE shortly entered the top 10 rankings by market cap for the first time since 2015.
After that massive pump lost momentum and traders rapidly took profits, it appeared that the investors would move on past the meme-based crypto and get something else to invest in.
The pump originally kicked off when exchanges prevented the retail traders from acquiring more AMC and GameStop stock on January 28. Pushed by the Reddit discussion group r/Wallstreetbets, a majority of these investors turned their attention to silver and some ‘cheap’ cryptos.
On the same day, the Twitter user “WSB Chairman” asked his 750,000 followers:
“Has Doge ever been to a dollar?”
That question was enough to trigger the massive rally, despite DOGE having no protocol upgrades or developments since 2015.
The 68% retracement that followed the surge to $0.087 resembled Bitcoin’s steep drop after the December 2017 crash. But this time around, instead of the 50 days, it took just24 hours.
What Is Really Pushing DOGE?
Many social media influencers and streamers expressed major discontent at buying the top, an indication that the short speculative frenzy had passed. After it spent most of January 30-31 hovering near $0.03, DOGE managed to produce another 80% pump within three hours.
It is now almost impossible to determine the exact trigger for these events, since there are many social networks, including multiple private Telegram groups and trading signal apps participating in the price action.
Reddit’s r/SatoshiStreetBets currently has over 213,000 active users. After DOGE’s breakout, a meme-post by Woke_AF_Populist rapidly surged to its most upvoted list.
There appears to be unlimited support from the DOGE fanbase, including Tesla’s CEO and founder Elon Musk. There is no concrete use case for the meme coin which raises the question of whether the members of r/WallStreetBets will convert from the traditional markets and embrace the mostly unregulated ethos of the crypto industry.
Irrespective of the outcome, from now on, measuring social activity might become a norm instead of an alternative indicator.
