Is Dogecoin Following XRP?
Before Tesla Inc creator Elon Musk’s appearance as the host of American live television sketch comedy and variety show, Saturday Night Live (SNL), on Saturday, the controversial cryptocurrency Dogecoin jumped more than 50% to a market capitalization of about $90 billion.
Musk is one of the most vocal proponents of cryptocurrency. Last week, Musk tweeted, “The Dogefather SNL May 8,” implying that the crypto-asset would appear on an upcoming episode of Saturday Night Live.
Dogecoin (DOGE) is soaring, while Bitcoin (BTC) is stumbling, but one analyst believes the DOGE bubble will burst this week.
Lowstrife, a prominent Twitter account, highlighted similarities between Dogecoin and XRP with warning signs that “the end” is near in a series of tweets on Tuesday.
Each of Doge’s major rallies this year has been smaller and less aggressive. What took 18 hours at first has been ongoing for 2 days now,” Lowstrife commented.
The most recent step of the DOGE miracle resembles the XRP Price drive in 2018 before hitting its still-valid all-time high of $3.20. Following that, the pair gradually faded to a low of $0.14, a 95.6% decline.
For younger market players, the current situation is all too familiar. Individual traders forced the stock price up to smash short hedge funds in the GameStop fiasco, which offered fertile ground for a cryptocurrency copycat step.
Other than requiring trading platforms to do the work for them, regulators have no way to impose pressure on traders or limit access to the commodity itself, unlike with stocks.
Adam Back, CEO of Blockstream, said that
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.