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According to one observer, Elon Musk’s upcoming TV appearance could spell the end of Dogecoin, as market activity in 2018 resembles that of XRP.
Dogecoin (DOGE) is soaring while Bitcoin (BTC) is struggling, but one expert believes the DOGE bubble will burst this week.
In a series of tweets on May 4, popular Twitter account lowstrife highlighted similarities between Dogecoin and XRP among warning signs that “the end” is nigh.
DOGE/USD has managed to rise this week, overcoming recent declines to reach a new high of $0.47. Year to date, the pair is up 7,000%.
With big supporter Elon Musk set to appear as “The Dogefather” on Saturday Night Live on May 8, the date is fast becoming a line in the sand for the meme-based altcoin’s fortunes.
Musk, who has made headlines this year for his supposed love of Dogecoin, has also fueled recognition of its gains as based not on merit, but on the viral impact of memes.
Why tf does @elonmusk going on Saturday Night Live create the scenario to push DogeCoin to $1.00. Somebody please help me understand this logic?
— Jason A. Williams “Parabolic Guy” (@GoingParabolic) May 5, 2021
However, if the tide turns, bagholders can risk losses similar to those experienced following the end of the 2018 “alt season.”
The symptoms of the apocalypse, according to pseudonymous cryptocurrency trader Lowstrife, are now apparent on the spot sector.
“This year, each of Doge’s major rallies has been smaller and less aggressive. What took 18 hours at first has now lasted two days, according to Lowstrife.
“I suspect this is the final push before it’s all over for good. May 8th is the day to watch.”
Echoes of XRP’s longstanding all-time highs
The most recent period of the DOGE miracle is strikingly close to XRP’s last drive in 2018 before XRP/USD reached its still-valid all-time high of $3.20. Following that, the pair gradually declined to a low of $0.14, representing a 95.6 percent loss.
For younger industry players, the present situation is all too familiar. The GameStop fiasco, in which individual traders drove the stock price up to smash short hedge funds, offered fertile ground for a cryptocurrency copycat move.
In contrast to securities, regulators can only place leverage on traders or limit access to the commodity itself by requiring trading sites to do the job for them.
Explaining the phenomenon, Adam Back, CEO of Blockstream, said that the DOGE bullrun was an example of a casino-like market.
“Like a GME short-squeeze. Not because the market agrees it has value, but actually opposite because it’s rightly shorted as being devoid of value,” he argued on Twitter.
“The more of a joke, easier to pump, whatever people will rally around a group pump and dump casino rug-pull.”