Doge Bounces Back From Post-4/20 Losses; What Lies Ahead For The Meme Coin - Tesla (NASDAQ:TSLA)

Dogecoin DOGE/USD paused for a breather in the just concluded week following a stellar rally, but has picked up some of the lost momentum over the weekend.

The Crash That Followed Heady Gains: Doge 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 Doge community.

From 0.47 cents at the end of 2020, Doge rose to 43.12 cents on April 19. In the process, the crypto 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, or 4/20, observed as Doge Day. Incidentally, 4/20 has been celebrated as a day to promote marijuana consumption. The goal proved ambitious. The meme currency hit an intraday high of 42.23 cents on 4/20 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.

Doge 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 BTC/USD, the mother of all cryptos, 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 unstinted support of a frenzied retail following.

However, skeptics caution that investors should put in only as much money as they can afford to lose in the meme coin. Doge is not considered as a serious currency, and its climb is seen as a social-media driven phenomenon.

See also: Today’s Dogecoin Price

The unlimited supply of Doge is seen as a dampener, possibly leading to a crash when the tide turns. The irrational exuberance that is supporting the meme coin could prove frothy, and the bubble could bust at any time, experts say. That said, there is no harm in making merry as long as the Doge party lasts.

Photo by Дмитрий Шустов on Flickr

Market News and Data brought to you by Benzinga APIs