Dogecoin: Doge Jumps Ahead of Elon Musk's SNL Appearance
Dogecoin Price Analysis:
- Dogecoin continues to show massive price appreciation with some pointing fingers at Elon Musk’s upcoming appearance on Saturday Night Live as a possible reason.
- Musk has been instrumental in driving recognition for the cryptocurrency, which was initially created as a joke and, even to this day, is often referred to as a ‘meme coin.’
- Musk has pointed out the outlandish nature of staying in USD cash in a backdrop of negative real rates, and this drives some pretty intense speculation as investors seek out yield/return.
I never thought that an upcoming Saturday Night Live guest appearance might be considered as a market driver, but here we are, 2021. It was already a big year for Dogecoin coming into April. The meme coin had traded below a penny for the entirety of its existence until late-January of this year, at which point prices popped as GameStop and WallStreetBets themes started to gain attention.
By April, the coin had started to show a hold above the 5 cent marker (.05), and mid-month prices exploded up to the .40 threshold, helped along by some interesting tweets from Tesla’s Technoking (actual title), Elon Musk.
In late-April, April 28th to be exact, Elon Musk tweeted ‘The Dogefather. SNL May 8,’ and Dogecoin has been in an intense rally ever since. This has led to speculation that there’s a building mass of buyers backing the move, and the SNL appearance may represent some type of volatility event in the coin.
And on that topic of volatility, the boat is already rocking pretty aggressively – with today’s daily range constituting 33% of the coin’s value. In situations such as this, where we’re seeing some pretty outlandish drivers create some pretty amazing volatility, psychological levels will have a tendency to take a toll as a retail market may struggle to adjust to new high watermarks.
But, realistically, this is a situation rife with risk where investors may very well end up walking away with dismay. Dogecoin is extremely and highly speculative, appearing to be driven by memes and, possibly even an appearance on Saturday Night Live, so extreme caution is urged as the heavy volatility may remain in the near-term.
Dogecoin Hourly Price Chart
--- Written by James Stanley, Senior Strategist for DailyFX.com
Contact and follow James on Twitter: @JStanleyFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.