Dogecoin hits ‘DogeDay’ target of 69 cents
By Neil Dennis
06:45, 5 May 2021
Dogecoin soared to a new record high on Wednesday and pushed its way back up the market capitalisation rankings to hit fourth spot.
The meme-based altcoin hit a new record of 69.38 cents, up 60% on the day and taking its market cap to $87bn – making it the fourth-largest cryptocurrency behind bitcoin, ethereum and binance coin, and pushing XRP down into fifth position.
Dogecoin has found plenty of support in the past few sessions. On Tuesday it rallied strongly after digital exchange platform eToro said it would support trade in the dog-themed cryptocurrency that was originally invented as a joke.
Celebrity support
It also gets a boost every time Tesla founder Elon Musk mentions it by name. A confirmed crypto-devotee, Musk is followed closely by other investors for hints at what he may be buying.
On 28 April, Musk tweeted about his upcoming appearance as host on the US comedy show Saturday Night Live, calling himself “The Dogefather”. Musk insists, however, such tweets are jokes.
Mark Cuban, billionaire owner of the Dallas Mavericks baseball team has also tweeted about dogecoin, and the club accepts payments in the cryptocurrency, with around 6,000 dogecoin transactions in April.
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DogeDay revisited
Meanwhile, social media campaigns similar in style to the Reddit-inspired activism that saw retail investors do battle with hedge funds over GameStop short selling have also helped bring dogecoin into the spotlight.
A campaign to ramp up its price was started last month, hoping to bring the value of dogecoin up to 69 cents by 20 April – which was deemed by the campaign to be DogeDay.
“It’s moved by headlines, tweets, celebrity, or corporate endorsements and while that’s likely belittled by ‘traditional’ investors, it’s what brings the masses to cryptocurrencies,” said Michael Kamerman, chief executive of Skilling.
He added: “The masses understand headlines, tweets, and endorsements and the masses will likely mature as crypto enthusiasts and begin to appreciate the movement for its more technical nuances.”
Whether coincidental or due to technical trading reasons, Tuesday’s rally appeared to be finding resistance at the 69 cents level. Having hit its 69.38 cents record high, dogecoin slipped back to 66.65 cents in early morning trade in London.
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