Will Dogecoin crash? May 8 dubbed ‘day to watch’ as ‘Dogecoin Doomsday’ looms

Dogecoin ‘is pure speculation and will end badly’ says Yusko

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Dogecoin is now worth more than SpaceX in terms of its overall market value after it doubled in price last week. The cryptocurrency, which started off as a joke, was trading above $0.60 (43p) on Thursday, placing its overall market cap at a huge $78billion (£50.3billion) – $4billion more than the estimated value of Elon Musk’s privately held aerospace company, according to recent US Securities and Exchange Commission (SEC) findings. However, this could all change in just a matters of days as Mr Musk plans to make a TV appearance.

Will Dogecoin crash?

Dogecoin’s value soared after Mr Musk promoted the crypto coin on his Twitter page.

And now with Mr Musk due to make his promised appearance on Saturday Night Live (SNL) as ‘The Dogefather’ this week, May 8 has quickly become a line in the sand for the coin’s fortunes.

Mr Musk has fuelled Dogecoin’s acceleration by 144.4 percent by tweeting about it, and since the beginning of 2021 Dogecoin has jumped 13,955.42 percent.

The Tesla CEO’s upcoming SNL appearance, featuring Miley Cyrus as a guest, has already been met with controversy on social media with some fearing it will send Dogecoin spiralling

Conservative investors are noting that Mr Musk hasn’t always been a successful driving force within the crypto market.

In fact, one report by Benzinga recently predicted the Tesla CEO’s overall influence on the crypto market is waning.

According to Benzinga, Dogecoin is hovering in the overbought territory with a Relative Strength Index (RSI) of 81.58.

Given that there’s already quite a bit of hesitancy around Mr Musk’s SNL cameo, it will be interesting to see how Doge fares over the weekend.

Dogecoin’s latest record price rally has seen its value increase by more than 300,000 percent since this same time last year.

However, some crypto experts claim Doge’s underlying technology and overall utility is second-rate compared to other coins like Bitcoin or Ethereum – making it all the more likely a crash is imminent.

Antony Portno, founder of cryptocurrency information site Traders of Crypto, told the Independent: “On face value, it is a complete mystery as to why dogecoin continues to grow: it is a meme coin, with bad tokenomics and no development.

“We all know the world of crypto is in equal measure crazy and fickle.

“Social media has been the key contributor to the growth of Dogecoin… it has become an anti establishment rebel coin.”

During its monthly market report published on Wednesday, crypto exchange platform Kraken said Dogecoin’s soaring popularity was leerily down to a culture of “meme stocks”.

This new type of stock is mainly driven by online forums of retail investors on social sites like Reddit.

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The report stated that Dogecoin is, after all, “the original meme asset”.

Kraken added: “This is an extension of the value that cryptocurrencies derive from vibrant and growing communities that give rise to network effects.”

Many Reddit Dogecoin investors have been urging others not to sell despite how far the coin’s value soars.

Many fear that a mass sell-off at this point could cause a monumental price crash similar to Dogecoin’s fall in 2018 when value plummeted more than 80 percent.

Despite its volatility, some analysts continue backing Dogecoin’s price potential.

Senior analyst at UK Investing Jesse Cohen said: “We see a greater likelihood that Dogecoin will reach the $1 mark in the coming days, with probability rising for Doge to rally as high as $5 later in 2021 amid soaring social media interest.

“Dogecoin mania has shown once again the power of the retail crowd. Growing acceptance by retail traders and mounting support from high profile billionaires will continue to add the legitimacy of the meme cryptocurrency.”

Whether or not Dogecoin is going to crash is yet to be seen, although judging by other cryptos like Bitcoin, a crash has to happen at some point in time.

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