Most recently, DOGE pulled off a 10x gain as it rallied to $0.74 in the past week. The breakout was fueled mainly by Tesla CEO Elon Musk and his constant mentions of the token on social networks and interviews. Surprisingly, as Musk debuted on Saturday Night Live on May 8, Dogecoin price corrected by 42% even as Musk, his mother, and SNL actors mentioned DOGE in various skits.
This event led to something rather unusual as DOGE traded over $130 billion over the past week, while its market capitalization stands at $65 billion. This raises the question of whether the largest whales were involved or if futures contracts played an essential role in the crash?
Musk’s SNL appearance boosted expectations
Regardless of the world’s second wealthiest person’s motivations, Musk’s Saturday Night Live appearance appeared to have marked a price peak. Most likely, the event was highly anticipated, therefore causing the typical “buy the rumor, sell the news” price action.
It is not clear why the billionaire has taken such an intense interest in DOGE. Some say this trolling reflects just a personal hobby rather than a core belief that Dogecoin can reform the entire monetary system.
I see Elon Musk removed BTC from his profile. Around the same time, he tweeted about Doge.
Not too hard to guess what’s going on. Post a funny little joke/distraction after your lawyers ask you to take down the BTC logo while the serious paperwork/filings get done.
— MacroScope (@MacroScope17) February 4, 2021
Moreover, Google searches for the meme coin managed to surpass the leader Bitcoin (BTC), an absolute victory for its fan base, including Mark Cuban, the owner of the Dallas Mavericks NBA team.
Whales are accumulating, not dumping
Dogecoin is highly…