As proof of how crazy markets have gotten, Dogecoin is now worth more than Twitter. While it looked like the DOGE train was running out of steam during the late April sell-off, its market cap nearly doubled to just under $ 50 billion in less than two weeks.
Elon Musk's commitment is a factor in all of this. The Tesla billionaire will reportedly mention Dogecoin during his upcoming appearance on Saturday night, May 8th. Basically there is also the fact that more and more merchants are starting to accept the meme token as a payment method. While critics claim DOGE has no basics, who has the final laugh now?
Dogecoin is stunned the market with ever higher price cracks
Despite all the conventions, Dogecoin continues its incredible run and even manages to flip Cardano. YTD gains are currently 7,800%.
After the recent sell-off of the market, a strong rebound by DOGE set in motion a strong upward trend in prices. Today you can see more of it and gain 7% since the day opened.
Analyst Kas1a recorded DOGE every 4 hours and came to the conclusion that his run was "unstoppable". His analysis shows a price trend in relation to an upward looping line that formed during the recent slump. Add to this a price level above the 13, 50 and well above the 200 and 800 EMAs, and the fall of a $ 1 DOGE is becoming increasingly possible.
Dogecoin co-founder Billy Markus said a $ 1 dog was not something to wrap his head around. According to him, Dogecoin was created in a matter of hours and was always intended as a rift against the extremely serious cryptocurrency industry, not a project that outperforms Twitter.
It gets even more absurd. A look at the company's current market capitalizations shows DOGE in the immediate vicinity of Volvo, Honda and Philips Electronics. All of this provides material goods and services to millions of people.
Mark cannot explain how or why his creation got where it is today. However, it does raise the possibility that we are no longer living in reality. Given the divergence of stock markets from the real economy, he might have a point.
"Perhaps it is that Dogecoin can be a good barometer of how far things can be from reality."
How long can DOGE go on like this?
Charles Hoskinson, CEO of IOG, commented on the rise of Dogecoin as a bubble. He attributes his price development to Elon Musk and to market manipulation by “clever whales”.
"Let's be very clear, this is a bubble. DOGE's price is unsustainable, it will collapse and a huge amount of retail money will be lost very quickly."
If it goes south for DOGE, Hoskinson fears that regulators will be forced to take action, resulting in tighter regulation across the cryptocurrency industry.
These comments were made two weeks ago. Since then, DOGE has proven to be more resilient than Cardano. Perhaps it is time to accept that the basics no longer matter.