Under the elevating expression of a Reddit group, Dogecoin witnessed one of the fastest surges in the crypto space. The meme-based coin rose by over 11,00 percent in a matter of 48 hours, jolting the crypto community into a series of flashbacks. The Reddit community is not new to a pattern like this, but the question stands, whether or not they remember the after-effects of such an explosive stunt. The hype kicked into action when the “SatoshiStreetBets,” a Reddit group called on the normal traders to start buying Dogecoin, taking to Twitter to fuel the frenzy.
Trending Its Way to the Sky and Back
Going viral over major media platforms, Dogecoin settled itself among the top 10 largest cryptocurrencies by market cap, while going past its previous all-time high. Gaining massive attention from the crypto community, Dogecoin gathered heavy trending volume being subject to almost 90,000 tweets, surpassing the Twitter volume generated by Bitcoin, according to the TIE.
Bolstered by the most wanted and hypothetical CEO of Dogecoin, Elon Musk’s tweet contributed to the social and financial uprising of his allegedly favorite coin.
— Elon Musk (@elonmusk) January 28, 2021
Often seen supporting the dog meme token, it is still a matter of speculation if Musk was ever serious about his take on Dogecoin.
However, the surrounding hysteria is being closely affiliated to the similar hype generated by the Reddit group “WallStreetBets,” as an imitation of the then created gains for GameStop. Ironically, Elon musk was also a contributing factor to the sudden surge of GameStop through his “GameStonks” tweet that rallied its stock over 150% in a matter of 24hrs.
Dogecoin Gearing for the Inevitable Crash
The unexpected surge of Dogecoin, however, serves as a token of reminder for the inevitable plunge, often seen by assets that see explosive gains after going viral. Apart from reflecting on the history of the previously Reddit hyped GameStop, the price movements of the asset indicates a deeper scope for correction in the coming time, proving highly risky for traders who are falling for the current highs.