June 15, 2021

Dogecoin Plummets 30% From Highs Following Elon Musk’s SNL Appearance

2 min read

Following weeks of speculation and extreme volatility, lots of traders were expecting Dogecoin to rise to brand-new highs from Elon Musk’s Saturday Night Live appearance. In anticipation of the Tesla CEO’s debut on SNL, Dogecoin’s rate rose almost 100% in the previous week alone.

On Friday, Dogecoin hit its all high of $0.71 cents — — up a huge 14,000% year-to-date.

To the disappointment of many, however, Musk’s cameo ended with the cryptocurrency tumbling nearly 30% in less than an hour. Its rates plunged from $0.69 to a brand-new low of $0.49, prior to paring losses by recuperating to as high as $0.55. At press time, Dogecoin is trading at $0.53.

Dogecoin stabilized at the$0.50 variety following Musk’s

SNL Debut. DOGE/USD on Tradingview.com This gut-wrenching drop led to Dogecoin losing$27 billion in market capitalization. According to ByBt, futures trades banking on DOGE lost $303 million in the previous 24 hours. To put it into viewpoint, Bitcoin and Ethereum, the 2 biggest cryptocurrencies, saw a combined$350 million in liquidations in the past 24 hours. It’s essential to note that the pair have a combined market cap of $1.52 trillion, and daily trading volume of $120 billion — — big compared to Dogecoin’s numbers.

Explaining Why Dogecoin May have actually Dropped

Without a doubt, Elon Musk has been among the most essential supporters of Dogecoin’s success. Even prominent figures such as Mark Cuban have actually been outspoken by the self-proclaimed “Dogefather” and his assistance of the once obscure altcoin.

Lots of speculators bought into the coin in anticipation of Elon Musk name dropping Dogecoin during his opening monologue. In hindsight, not even 93 minutes of recommendations to the cryptocurrency might prop its rates up.

A possible description might be that his mentions of Dogecoin were too few and far between, disappointing speculators and traders.

Another factor be because of Robinhood suffering blackouts. According to the brokerage, its crypto trading platform minimal users from fulfilling trades for roughly an hour.

Surprisingly enough, when Robinhood revealed that it had actually resumed services at 9:52 PM PST, Dogecoin’s rate slid another 7% in the next 10 minutes. While it may be a coincidence, it’s certainly a possibility that a flood of market orders being performed sent the cryptocurrency lower.

As seen at roughly 5:00, Dogecoin’s price instantly dropped 7% right when Robinhood’s crypto services resumed — — a possible sign that worried traders were placing orders during the shutdown. Source: Tradingview.com

With the recent ordeal, it remains to be seen whether Dogecoin can surpass its all-time high at any time quickly.

Included image from UnSplash