In what has been a torrid week for crypto markets, controversial meme token Dogecoin has shown strength in posting a 50% gain from Tuesday’s low of $0.16. At the time of writing, DOGE is priced at $0.22.
The $0.16 zone was established as a strong support area, having formed in mid-April, around the time of the Elon Musk energy-FUD. This week saw DOGE bounce off this level on three occasions, further substantiating it as a price level where buyers step up.
Crypto markets are making the most of the bullish momentum. But Dogecoin leads the top-10 in terms of biggest percentage gains today.
However, the narrative that DOGE has already topped out persists. And with no shortage of analysts reiterating this message, will the much-fabled $1 price target remain just that – a fantasy?
Source: DOGEUSD on TradingView.com
Dogecoin Former Millionaire Still Thinks It’s A Long Term Hold
Dogecoin’s 2021 performance has been nothing short of spectacular. At its peak, in early May, DOGE was priced at $0.75, giving it a year-to-date performance at the time of +15,000%.
This accomplishment was enough to embarrass the established “legit” cryptocurrencies. It also set up a narrative that defined use cases, and sound tokenomics doesn’t necessarily equate to out-doing the competition.
For some crypto purists, Dogecoin was a source of much resentment. Its rise demonstrated that making huge profits in crypto isn’t reserved for those who do the research and make rational judgments based on that.
Glauber Contessoto was one such “degen.” He became a millionaire after investing his $250,000 life savings in Dogecoin in February. In a matter of two months, he 4x his money to reach millionaire status. And during early May’s peak, he reported being a multi-millionaire as his Dogecoin holdings hit $2 million+.
However, with this week’s downturn, his Dogecoin valuation dipped below the million-dollar threshold, to $831k. Despite that, Contessoto has no plans to cash out.
Speaking to CNBC, Contessoto said he originally planned to hold for a year. But now, he intends to keep his DOGE for much longer, meaning short-term fluctuations are of little consequence to him.
“Whatever happens in the short-term doesn’t matter to me because I’m looking to ‘hodl’ dogecoin for years to come. I’m truly not worried at the end of the day.”
DOGE Is A Pump And Dump Victim
Considering that fundamentals must catch up at some point, some analysts have warned that the Dogecoin top was already in.
Financial advisor Ric Edelman pointed out that Dogecoin has no use case and has hindered the cryptocurrency industry’s attempt to generate credibility.
Edelman went as far as calling Dogecoin a victim of a pump and dump orchestrated by Elon Musk.
“It’s a victim of a pump and dump scheme by certain very famous wealthy individuals who shall be nameless here on the program. Elon Musk.”
However, with the backing of meme-inspired millennials, who says markets have to act rationally?