Doge day euphoria ebbs as Dogecoin rally fades
By Neil Dennis
05:47, 21 April 2021
The euphoria of ‘Doge day’ gave way to the day-after hangover on Tuesday as Dogecoin slid nearly 20% from its Monday highs.
Labelled as Doge day by a concerted Twitter campaign to drive up the price of the meme-based cryptocurrency, Monday’s effort to push the price up to US $0.69 against the US dollar, fell short at a daily high of 42.2 cents.
Having risen by nearly 350% in a week – reaching a record high of $0.45 on Friday, April 16 – Dogecoin briefly replaced Ripple’s XRP as the fifth-largest cryptocurrency by market cap.
The hangover begins
On Tuesday, Dogecoin was down 18% at 33.5 cents, which still left it as the sixth largest cryptocurrency – although, given that 10,000 Dogecoins are programmed to be created every minute, it will take more concerted buying power to rally from here.
Sheldon McIntyre, analyst at FXStreet, noted that the number of new addresses created to join in the Dogecoin buying spree last week had surpassed the previous high set in January.
He warned: “It indicates that the bullish anthem might have travelled too far, too fast, creating bubble-like conditions.”
What is your sentiment on DOGE/USD?
Other top 10 cryptos rally
Eight of the other nine top cryptocurrencies by market cap were making robust gains on Tuesday, with the Binance cryptocurrency exchange's binance coin (BNB) mounting a strong technical rally after falling 33% from its April 12 high of $638.56.
Having fallen as low as $430 on Sunday, the native cryptocurrency of the world’s biggest crypto exchange was back up to $609.23 on Tuesday, up 27% on the day.
Bitcoin (BTC), which has fallen 14% since hitting its record high last week, was trading 3.4% higher at $55,699, while Ethereum’s native cyrptocurrency ether (ETH) jumped 12% to $2,322.
XRP, which very briefly lost its fourth-place by market cap to Dogecoin on Monday, rallied 17% to $1.43, cementing its position in the top 10.
Trade DogeCoin to US Dollar – DOGE/USD CFD
Read more: Dogecoin soars but valuation could be barking mad
Markets in this article
Related topics