After attracting attention due to 980% pumping on January 28th, Dogecoin (DOGE) entered the ranking of the top 10 cryptocurrencies by market capitalization for the first time since 2015. Once the massive pumping lost momentum and traders quickly took profits, investors seemed to step over the meme-based cryptocurrency and find something else to invest in.
The pumping initially started when the stock exchanges prevented retailers from buying more GameStop and AMC shares on Jan. 28. Fueled by the Reddit discussion group r / Wallstreetbets, the army of investors turned their attention to silver and a selection of “cheap” cryptocurrencies..
On January 28th, Twitter user “WSB Chairman” asked his 750,000 followers: “Has Doge ever hit a dollar? That was enough to trigger the monster surge, even though Dogecoin hasn’t had any log updates or developments since 2015.
The 68% retracement after the high of $ 0.087 was similar to the sharp decline in Bitcoin (BTC) after the December 2017 crash.Except this time it was only 24 hours instead of 50 days.
Several influencers and social media streamers expressed dissatisfaction with the purchase at the top, an indication that the current speculative madness was over.. After spending most of January 30th and 31st on $ 0.03, DOGE managed to produce another 80% pump in less than three hours.
It is almost impossible to find the exact trigger for these events as there are several social networks, including private telegram groups and trading signal applications.
Reddit group r / SatoshiStreetBets currently has 213,000 active users. After the DOGE move, a mem / post by user Woke_AF_Populist quickly rose to the list of top rated users.
The Dogecoin fan base seems to have endless support, including Tesla CEO and founder Elon Musk. The lack of a specific use case for memecoin certainly begs the question of whether members of r / WallStreetBets will step off the ship of traditional markets and embrace the generally unregulated spirit of the cryptocurrency sector.
Regardless of the result, From now on, measuring social activity becomes the norm rather than an alternative indicator.
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