It started out as a “joke coin” but in 2021, Dogecoin is breaking records! Just a few months ago, it was worth only a couple of cents. However, since Elon Musk endorsed it, the price of Dogecoin (DOGE) has gone up by more than 2,000 times.
Many crypto enthusiasts believe that’s not the end. For many of them, the recent Dogecoin surge is a sign that something much greater is coming soon. And by “soon” they mean this weekend!
On Saturday evening, the most famous Dogecoin proponent is making an appearance on Saturday Night Live. The fans of the coin believe Musk might mention Dogecoin on NBC’s show.
If he does, the price of DOGE is almost certainly going to skyrocket. Why? Because the same happened each time Musk mentioned this coin in the past.
Dogecoin Price Keeps Oscillating
A month ago, the price of one DOGE was $0.5. A few days ago, it reached the record $0.72. However, it didn’t stay at such high point for too long.
At the moment of writing, the Dogecoin price is $0.58. Although the interest in this altcoin keeps growing, its price crashed recently. What’s the deal with it?
The thing about Dogecoin is that this crypto has a very large coin supply. About 10 million new Dogecoins are added to the supply on a daily basis. For this reason, it’s only natural for DOGE price to level out after drastic spikes.
However, the Dogecoin bear run should not be extreme. It’s supposed to happen slowly, over several days/weeks. So, why did the price go from $0.72 to $0.58 in less than a day?
The reason is that Dogecoin owners started selling their assets on a large scale. When the coin broke the all-time record, people decided to cash-in on the surge, making big profits along the way.
As a result, the Dogecoin price went down suddenly after reaching its peak, which made holders panic. So, they started selling even more, which further reduced the price before it finally stabilized.
At this point, it’s only natural to assume the price will enter another bull run. Still, you can never be certain when Dogecoin is concerned. This is the reason why Elon Musk says you should invest in cryptos with caution!
Please Invest With Caution!
Even though he’s a self-professed cryptocurrency fan (although only since 2020), Elon Musk did warn his Twitter followers about the risks that come along with crypto investing.
In the message he aimed at his 53m+ followers, Musk included the link to a video interview he did with TMZ a couple of months ago.
In the interview, the Tesla boss warned people not to “invest their life savings in cryptocurrency.” Instead, he suggested crypto investing should be about long-term speculations. For this reason, his company invested $1.5 billion in Bitcoin a few months ago.
Sound like a lot of money, but keep in mind that Elon Musk is the world’s richest man, with his net worth estimated to be around $166 billion.