Dogecoin (DOGE) is once again at the frontlines of massive market gains. The meme coins seem to be riding the wave of ceaseless promotion from Tesla CEO Elon Musk.
Dogecoin appears to have sustained its bullish momentum over the week. After showing some signs of consolidation, market participants have now continued to build on that euphoria.
Another DOGE Tweet, Another Spike
On Feb 4, the meme coin made another 50% upswing shortly after the latest Musk tweet. Traders interpreted this as a buy signal, which cascaded into further buying.
In December, Musk tested the waters with a three-line tweet. And in January, it finally recorded substantial volatility, surging 250%. This drove the price from $0.007 to $0.07.
The price action subsequently calmed down, lasting a few days. Dogecoin is currently exchanging hands around $0.045 and may be geared towards another push higher.
Redditors have also contributed immensely to dogecoin’s massive price action after traders moved their attention from GameStop (GME). r/WallStreetBet investors channeled their attention into the meme coin after trading activities were paused on Robinhood.
They achieved this by flooding Reddit with posts, suggesting that investors should quickly long positions on DOGE. Musk is not the only notable person that has contributed to the growing frenzy.
On Monday, Feb 1, former rockstar Gene Simmons announced that dogecoin was among his crypto holdings. He noted that this was not investment advice. Simmons also admitted to owning XRP and other cryptocurrencies.
The Meme Coin Moves into Business
Dogecoin, which may have started off as a joke, has turned into something of a business token. On Monday, Kronos Advanced Technologies, a publicly-traded company, announced that it would receive DOGE as payment.
Similarly, cryptocurrency derivatives exchange BitMEX has latched onto the bullish DOGE mania. It will be launching a perpetual swap contract for the cryptocurrency on Friday, Feb 5.
The listing may allow traders to load up on positions as the new swap will have up to 20x leverage. BitMEX has already created a testnet for the DOGE/USDT trading pair. It stated in the announcement that the contract would be visible from Jan. 4, 2021, at 4:00 UTC.
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