Crypto sentiment dulled as investors continue to get out of Doge
By Neil Dennis
06:45, 23 April 2021
Three days after the much-anticipated “Doge Day”, the meme-based cryptocurrency has more than halved in value following a concerted effort by its fans to push the currency higher.
The Twitter campaign #DogeDay420 attracted many new buyers to dogecoin (DOGE), and in just over a week, it helped to push the cryptocurrency from around the $0.05 mark to a record high of $0.45 on 16 April.
The campaign, which designated 20 April as Doge Day, had the aim of pushing the currency as high as $0.69 on the day. Sadly, it only reached $0.434 and has been descending ever since.
Nigel Green, the founder and chief executive of financial advisory organisation deVere Group, had warned that the coin’s rally could be getting a little frothy several days before Doge Day euphoria struck.
He said: “In the same way that the GameStop frenzy was pitched as a battle-play of ‘Wall Street versus The Little Guy’, Dogecoin is being pitched as a battle-play against the well-established crypto giants like Bitcoin.” But, as he pointed out, that’s not the way reasoned, savvy investors typically strategise.
On Friday, the dog-memed cryptocurrency was down a further 28% at $0.203.
Bitcoin falls below $50K
Most other cryptocurrencies took a hit on Friday. Bitcoin (BTC), the largest of them all by market capitalisation, fell below $50,000 for the first time since 8 March.
Some analysts attributed the losses to fears that a planned capital gains tax hike by President Joe Biden's administration in the US could stifle investment in cryptocurrencies.
Technical selling may also have been prevalent from Thursday, however, after Bitcoin fell below the 50-day moving average support that it had defended throughout the rally that drove it to a record $64,778 on 14 April. Bitcoin has now fallen for seven out the last eight days.
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. . . and the rest follow
Ethereum's Ether (ETH) momentum has bucked the downward trend in recent days, as it hit its record high of $2,643 on Thursday. The second-largest crypto by market capitalisation was, however, lower on Friday – down 12% at $2,176.
Rounding out the top three, the Binance coin fell 15.5% to $472.47 – its third-consecutive down day.
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