Is Dogecoin in Trouble Amid the DogeDay?

Is Dogecoin in Trouble Amid the DogeDay?
Is Dogecoin in Trouble Amid the DogeDay?

Yerevan (CoinChapter.com) — As some experts believe Dogecoin (DOGE) might cease to exist sooner rather than later, Twitterverse celebrates 4.20 as DogeDay and wants the price to reach $0.420 to commemorate the special occasion.

Is Dogecoin in Trouble?

Some experts see cryptocurrencies in general — and altcoins (digital assets other than Bitcoin), particularly — a bubble that could burst at any given moment. Eddie Ghabour, the co-founder of the financial advisory company Key Advisors Group, voiced his opinion in a recent interview with Yahoo Finance on Monday.

“So I look at Dogecoin as more of a speculative play that when this bubble bursts, it will probably cease to exist,” the expert stated. Ha also added, “In regards to crypto, Ethereum and Bitcoin are the two that I think will last even through the bubble. We are absolutely in a bubble. That’s why you see asset prices inflate the way they are. And crypto is the most speculative of all these risk assets”.

Ghabour also stated that he sees a few more months of bullish tendency on the crypto market. Then the bubble might burst, and altcoins will be the first to go.

But the cheery Doge is not worried yet, seeing as the price grew exponentially during the past week, stabilizing around $0.40 on Tuesday.

Will DOGE reach $4.20 for the DogeDay? Source: TradingView.com
Will DOGE reach $0.420 for the DogeDay? Source: TradingView.com

Why is Dogecoin Still Rising?

Many refer to this meme-cryptocurrency phenomenon as a joke, which is understandable, given how it started. But today, DOGE has a considerable market cap of $52 billion. It now sits among the top five cryptocurrencies, which possibly makes it a smart short-term investment for risk-oriented speculators.

DOGE’s rapid 473% growth during the past week is partially due to the hype on social media. Supporters of Dogecoin actively tweet about it, including Tesla CEO Elon Musk and the owner of NBA’s Dallas Mavericks, Mark Cuban. DOGE is maintaining its bullish rally despite Mr. Ghabour’s bearish predictions.

Meanwhile, Twitter is more than happy to celebrate DogeDay. The generated attention expects to most likely push the price even further, as more people are encouraged to join in.

Given the high volatility of Dogecoin, it is a risky investment. But as it’s firmly on the rise, many investors fear missing out on the opportunity. As Key Advisor’s co-founder stated, “Day trading is not something that’s going to work in the long run for most investors.”

Doge is still going strong, but the crisis could hit if the predictions of crypto-demise pan out.

Photo by Sean Quillen on Unsplash

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