Tesla founder Elon Musk’s favourite cryptocurrency, Dogecoin, fell sharply -21%, although yesterday was Doge Day and many traders expected that it would skyrocket to $1.
It is noted that the prices for Dogecoin, which is already 8 years old, had increased more than 60 times this year, with its value exceeding 50 billion dollars.
Somehow everything seemed possible. However, late in the afternoon of April 20th, the pressure intensified, with the cryptocurrency marked a fall of -21%, breaking the resistance of $0.34 cents.
“Many traders hope that today (yesterday, 20/4) there will be a special Doge Day and Dogecoin will go to the moon,” wrote Edward Moya, an Oanda analyst. “Some, however, saw the 50 cents as an opportunity to liquidate profits, while others hoped that the currency would reach $1”, he added.
Another question is whether this year’s Dogecoin earnings could attract new capital, as was the case with GameStop shares, which have led to a $1 billion capital increase. However, in this case it is worth noting that at some point Dogecoin had a larger market capitalisation than the American bank Barclays.
In any case, Blockchain data shows that activity is growing on the network; Active Dogecoin addresses and trading are at a seven-year high, according to analyst firm Coin Metrics. “Because Doge cared about us and provided us with divine profits, we also wanted to support the currency,” says a post on CryptoMoonShots Reddit.