I never thought that an upcoming Saturday Night Live guest appearance might be considered as a market driver, but here we are 2021. It was already a big year for Dogecoin coming into April. The meme coin had traded below a penny for the entirety of its existence until late-January of this year, at which point prices popped as GameStop and WallStreetBets themes started to gain attention.
By April, the coin had started to show a hold above the 5 cent marker (.05), and mid-month prices exploded up to the .40 threshold, helped along by some interesting tweets from Tesla’s Technoking (actual title), Elon Musk.
In late-April, April 28th to be exact, Elon Musk tweeted ‘The Dogefather. SNL May 8,’ and Dogecoin has been in an intense rally ever since. This has led to speculation that there’s a building mass of buyers backing the move, and the SNL appearance may represent some type of volatility event in the coin.
And on that topic of volatility, the boat is already rocking pretty aggressively – with today’s daily range constituting 33% of the coin’s value. In situations such as this, where we’re seeing some pretty outlandish drivers create some pretty amazing volatility, psychological levels will have a tendency to take a toll as a retail market may struggle to adjust to new high watermarks.
But, realistically, this is a situation rife with risk where investors may very well end up walking away with dismay. Dogecoin is extremely and highly speculative, appearing to be driven by memes and, possibly even an appearance on Saturday Night Live, so extreme caution is urged as the heavy volatility may remain in the near-term.
DOGECOIN HOURLY PRICE CHART
Chart prepared by James Stanley; Dogecoin on Tradingview
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