From 14 to 16 April the price of Dogecoin (DOGE) rose from $0.14 to $0.45, and then plunged to $0.24. According to CoinGecko, as of writing the price of Dogecoin had recovered to $0.40.
Currency.com’s deputy head of marketing Nikolai Markovnik believes that the token’s price is rising thanks to the support of Tesla founder Elon Musk:
«The Dogecoin price is rising solely due to hype and Musk’s support. The crypto community regards Tesla’s chief as something of a bridge between corporations and cryptocurrency. Musk publicly announced the arrival of large investors into crypto. But let’s face it: Dogecoin is a hype toy that nobody needed before Elon Musk’s tweets», — notes him.
Back in December 2019, Musk described Dogecoin as his favourite coin. In July 2020 and February 2021, Musk’s posts on Twitter hinting at Dogecoin pumped the coin’s price by 17% and 50%.
During the April price rally, on Currency.com the DOGE/USD market gained popularity:
«Last week the number of traders in the DOGE/USD pair rose fivefold, the number of trades tenfold, and the trading volume thirty-threefold compared with the averages», — comments Nikolai Markovnik.
He is confident that Musk uses Dogecoin for personal PR:
«I believe that Dogecoin for Elon Musk is a passport into the crypto community, a piece of personal PR. Tesla has revolutionised the automotive industry and is nudging buyers and manufacturers toward it. Cryptocurrencies have done the same in the financial world. Electric-vehicle users and cryptocurrency users share a spirit, and Musk uses this similarity for his own ends».
Nikolai Markovnik does not see real value in Dogecoin. At the same time, he does not deny that Elon Musk’s tweets and memes about DOGE could provide further upside for the token’s price:
«In the crypto community, they joke that Bitcoin is heading to the Moon, and DOGE is heading for the $1 mark. There is a chance the token’s price could reach that level. A couple of Musk tweets and the continuation of the bullish rally in the crypto market should suffice».
Earlier in April, ForkLog published a report on Currency.com’s achievements since the launch of the crypto exchange.
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