It all started with a tweet, Dogecoin, meme coin launched in 2013, has seen a major leap in recent days, following tweets from tech billionaire Elon Musk. The price of dogecoin peaked last week during a buying mania that edged the GameStop saga. While investors were eagerly waiting for dogecoin to rise to $1, co-founder of Dogecoin, Billy Markus released an open letter called the skyrocketing price of Dogecoin is “unintelligible”.
In the letter he revealed selling all Dogecoins he held as early as 2015 and bought a second-hand Honda Civic. Following Marcus’s open letter, netizens found an anonymous address that holds 27% of the Dogecoin supply, and speculated that this is Elon Musk’s address.
Is Dogecoin Hype Coming to an End with Marcus Open Letter?
Well, Possibly No, as Elon Musk has already extended his helping hand for his favourite currency, Dogecoin. On Sunday, Elon Musk tweeted that “If major Dogecoin holders sell most of their coins, it will get my full support. Too much concentration is the only real issue imo.” He further added that he will literally pay actual dollar if they just void their accounts.
If major Dogecoin holders sell most of their coins, it will get my full support. Too much concentration is the only real issue imo.
— Elon Musk (@elonmusk) February 14, 2021
This tweet by Elon Musk resulted in a sharp rise in the price of Meme based cryptocurrency.
Dogecoin Hype Analysis by Santiment
Based on social volume and trading volume metrics, the popular meme coin Doge has been on trends radar for many days. This week DOGE occupied 6 of 10 emerging trends because of Elon Musk’s tweet. Elon Musk, one of the most influential people, his tweet became the talk of the town and had the Dogecoin boom all over the cryptocurrency market. Here is the chart of Dogecoin’s social volume analysed on Reddit, Twitter, Discord, Telegram and other channels.
Per Santiment data, On 30th January, the price peak was lower then 29th january in correlation with social volume. In the following weeks price was in peak while social volume was declining, forming divergence.
The trading volumes were reacting to the trend in social volumes.
Santiment mentioned “Based on our previous experience (past performance doesn’t show the future one) this is a quite typical setup for at least midterm top: the highest interest of the crowd has been on the previous price peak which was not the top, while the latest top which happened a week ago or so happened on both social and trading volumes”.
Santiment further noted that Dogecoin can be in danger if Doge social volume and trading volume failed to overtake 29 Jan peaks.