The rise of the Dogecoin was as much surprise as the current drop that investors are experiencing. Given that the hype-fueled cryptocurrency saw its price increase as we approached the SNL performance yesterday night, it has left many investors or ‘hodlers’ as they like to refer themselves, shocked to see it fall after Elon Musk’s performance.
The Dogecoin is trading at $0.48 at the time of this story and it is unfortunate to say that it isn’t easy to estimate where it will bottom out. It was only two weeks ago that the Dogecoin was sitting pretty at $0.42, the first target it was suppose to reach before moving on to the hilarious $0.69 marker last week.
And with Elon Musk’s appearance on SNL yesterday night, it was rumoredly expected to jump to as much as $1. Now with panic sales already in progress for close to 24 hours, it is unclear if the Doge Army has been defeated and the hodlers limited.
With the coin sitting at the $0.35 mark for a long period in March, there was no doubt to have been many newbie investors jumping on the Dogecoin wagon back then. With that said, it would be just as possible that this would be the final stand for new investors who jumped in due to the hype the coin brought. So it is possible these investors would be thinning out as the coin starts to lower itself deep into the $0.40s.
There is one consolation however. With the Dogecoin being majority held by just a few select investors, including one whale holding close to US$22 billion worth of Doge and making the purchase back in 2019, there is still strong holding power behind the coin despite its humorous rise.
Of course this is just my opinion as there is no telling just how big of a dip this Dogecoin rollercoaster is heading for before seeing any leveling out.