As Cointelegraph reported, DOGE/USD has continued to climb this week, reversing previous losses to take out its previous sky-high peak of $0.47. Year-to-date, the pair is up 7,000%.
With major proponent Elon Musk due to make his promised appearance on Saturday Night Live as “The Dogefather” on May 8, however, that date is quickly becoming a line in the sand for the meme-based altcoin’s fortunes.
Musk, who has made headlines throughout the year for his alleged adoration of Dogecoin, has likewise fuelled acceptance of its gains as being based not on merit, but on the viral effect of memes.
Why tf does @elonmusk going on Saturday Night Live create the scenario to push DogeCoin to $1.00. Somebody please help me understand this logic?
— Jason A. Williams “Parabolic Guy” (@GoingParabolic) May 5, 2021
Should the tide turn, however, bagholders could face the kind of losses reminiscent of those which followed the end of the 2018 “alt season.”
For pseudonymous cryptocurrency trader Lowstrife, signs of apocalypse are already visible on the spot market.
“Each of Doge’s major rallies this year has been smaller and less aggressive. What took 18 hours at first has been ongoing for 2 days now,” Lowstrife commented.
“I suspect this is the final push before it’s all over for good. May 8th is the day to watch.”
Echoes of XRP’s longstanding all-time highs
The latest phase of the DOGE miracle is conspicuously similar to the final push by XRP in 2018 before XRP/USD hit its still-valid all-time high of $3.20. Subsequently, the pair slowly faded to a low of $0.14 — a loss of 95.6%.
The current situation is all too familiar for newer market participants, too. The GameStop debacle, in which individual traders pushed the price of stock to crush short hedge funds, provided fertile ground for a copycat move in cryptocurrency.
Unlike stocks, there are no ways for regulators to exert pressure on traders or restrict access to the asset itself, other than by forcing trading platforms to do the work for them.
Explaining the phenomenon, Adam Back, CEO of Blockstream, said that the DOGE bullrun was an example of a casino-like market.
“Like a GME short-squeeze. Not because the market agrees it has value, but actually opposite because it’s rightly shorted as being devoid of value,” he argued on Twitter.
“The more of a joke, easier to pump, whatever people will rally around a group pump and dump casino rug-pull.”