It seems that the DOGE-year could be over as the meme coin that surged in popularity after numerous Elon Musk engagements is down by roughly 75% since its peak less than two months ago.
This highlights the dangers for retail investors who follow celebrities blindly, as many of them are now urging Musk to help recover some of the losses.
DOGE is 75% Down In Six Weeks
Everything seemed to be going in Dogecoin’s way in the first several months of 2021. Tesla’s CEO, Elon Musk, who is one of the most influential people on Earth now, led the charge with numerous pro-DOGE engagements on social media.
His words reached other celebrities, global brands, and large companies, resulting in a snowball effect. The meme coin’s price saw a parabolic increase as retail investors rushed to brokers like Robinhood to purchase the next hot trend.
It all culminated on May 8th. Shortly before Elon Musk was scheduled to host Saturday Night Live for the first time, where he had promised to talk about the Shiba Inu-inspired token, the asset’s price skyrocketed to a new all-time high of $0.75.
This meant that it was just $0.25 away from the coveted target of $1. Furthermore, it also meant that the cryptocurrency that started out as a joke eight years ago had marked five-digit percentage gains in just over four months.
However, the trend reversed vigorously after Musk’s appearance on the popular show in a “sell the news” development. DOGE started to retrace heavily and lost 50% of its value in less than a week. Despite bouncing off initially, the market-wide correction, which coincidently also saw an Elon Musk involvement, drove it south again.
Earlier today, DOGE dumped to $0.16. Although it has recovered a few cents to about $0.185, the meme coin is more than 75% down since its ATH in early May. It’s now close to losing its spot in the top 10 largest digital assets by market cap, where it reached fourth place and was close to surpassing Binance Coin in May as well.
The Lessons to Learn
As mentioned above, Elon Musk may have been the DOGE-mania starter, but the rally was mainly fueled by retail investors. Dogecoin Google searches went through the roof as the cryptocurrency was everywhere.
People within and outside of the cryptocurrency industry were quick to invest in the hottest token. Bitcoin and other alternative coins with actual networks behind them were no longer attractive as they couldn’t promise multi-digit price increases sometimes in days.
The main question from outsiders changed from “should I invest in bitcoin or ether” to “from where I can buy DOGE.”
Now, though, it’s all different. The mood is grim with desperate investors who allocated more funds than they could have afforded are trying to get help. But, not the help you may expect – they want Elon Musk to intervene again.
Numerous people have begged the billionaire to tweet something positive about the meme coin so its price trajectory can reverse once more, as he has done so many times in the past. Yet, he is untypically silent now.
This raises the question – who is to blame – a billionaire with incredible influence who can impact the markets with a single tweet or all people who followed him blindly without doing their own research?