The gravity-defying Dogecoin price rally has paused ahead of Elon Musk’s hotly-anticipated appearance on Saturday Night Live tomorrow.
If you had told me at the start of the year that the meme coin, named after an internet-famous dog, would rally 18,000%, I would have suggested you see a doctor. Well, happen it did. Incredibly, a recent catalyst for the Dogecoin price to 4x from $0.1600 to $0.6800 was the announcement that Elon Musk is to host ‘SNL.’
Musk, the outspoken and often eccentric Tesla (TSLA) CEO, has consistently whipped his followers into a state of frenzy with comments on Dogecoin. The self-proclaimed ‘Dogefather’ has crypto investors waiting with bated breath ahead of tomorrow’s prime-time television appearance.
The Dogecoin price rally may well be the story of the first half of 2021. What comes next could well be the story for the whole of 2021.
The coin has slipped from its recent and all-time high of $0.680 and is currently trading at $0.582, and up a modest +12,000% on the year.
Altcoins have performed particularly well in 2021. Investors are embracing the possibility that blockchain technology has the power to disrupt traditional industries. Many of the coins that power these networks have real and unique utility.
Dogecoin is not one of them.
Please don’t take my word for it. The creator of Dogecoin sold all of his coins in 2015 to buy a Honda car. In what was possibly the worst trade of all time. The current Dogecoin price gives it a market cap of $75 Billion and more than +50% higher than Honda’s $51 Billion.
The price may well continue higher, but in my view, this will end badly for many. Unless someone can provide me with a valid reason why the Dogecoin price should be 12,000% higher than five months ago, I would rather sit on the sidelines.
I, like many others, will be watching Saturday Night Live with bated breath.
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