Doge Bounces Back From Post-4/20 Losses; What Lies Ahead For The Meme Coin

Doge Bounces Back From Post-4/20 Losses; What Lies Ahead For The Meme Coin

Photo by Дмитрий Шустов on Flickr

Dogecoin (DOGE-X) paused for a breather in the past week after a stellar rally, but has picked up some of the lost momentum over the weekend.

The Crash That Followed Heady Gains

Dogecoin rose from obscurity to the spotlight this year, thanks to the backing of stalwarts, including Tesla, Inc.'s (TSLA) Elon Musk, and the push given by the community. From 0.47 cents at the end of 2020, Dogecoin rose to 43.12 cents on April 19. In the process, the cryptocurrency achieved another feat of climbing past the $50 billion market capitalization mark.

Retail investors were hoping to push the currency past $1 on April 20, as observed as "Doge Day." The goal proved ambitious. The meme currency hit an intraday high of 42.23 cents on April 20, but came back down sharply to close at 31.95.

After Doge Day, the crypto retreated sharply, hitting a low of 16.37 cents Friday, a peak-trough decline of about 62% over four sessions. In traditional financial markets, a pullback of over 20% from a recent peak represents a step into bear market territory.

Dogecoin Finds Its Feet

The weekend, however, proved salubrious for the meme currency, as it climbed to a high of 28.94 cents on Saturday before settling at 27.02. It is seeing further momentum on Sunday. At press time, the crypto was seen rallying 6% to 27.4 cents over the last 24 hours. Incidentally, Bitcoin (BITCOMP), the mother of all cryptocurrencies, was down over 1%. Most others were also in the red.

Doge to the Moon? 

Dogecoin, created as a joke currency in 2013 using the theme of a Shiba Inu dog, has come a long way from its obscure beginning. It has grown to the stature of being accepted as a payment option in some instances and has found the support of some widely followed fund managers and corporate executives. Additionally, it has the privilege of having the support of a frenzied retail following.

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