Yerevan (CoinChapter.com) — The Dogecoin price has risen in price by almost 15,000 percent in 2021 and has hit a record high of $0.739 earlier this Saturday. While a section of enthusiastic analysts sees the joke cryptocurrency to surge to $1, some anticipate the pair would undergo serious declines in the sessions ahead.
Alistair Milne, the founder of Altana Digital Currency Fund, said in a tweet Saturday that he considers Dogecoin’s explosive price rally as retarded, hinting at the role billionaire Elon Musk played in driving excessive upside speculation to an otherwise meager token.
Dogecoin Price Boom: Smoke Without Fire?
The Tesla founder announced earlier this week that he would appear on the American talk show Saturday Night Live under the new guise of “Dogefather.” His tweet was instrumental in prompting traders to raise their Dogecoin bids. The token surged by almost 100 percent after opening on Monday at $0.373, leading Mr. Milne to criticize the foundation of its ongoing bullish rally.
He noted that people would start selling Dogecoin after Mr. Musk’s appearance on the Saturday Night Live. Meanwhile, the profits would move back into Bitcoin, the flagship cryptocurrency whose rallied stalled below $60,000 as traders’ attention shifted to Dogecoin, and similarly rallying alternative assets in the cryptocurrency market.
“Altcoin pairs vs BTC [will] start getting hurt,” said Mr. Milne. “More money [will rotate] back into Bitcoin.”
The executive predicted a $75,000-valuation for Bitcoin.
Narek Gevorgyan, the chief executive of CoinStats, an Armenia-based cryptocurrency wallet-cum-portfolio management service, also raised questions over the Dogecoin price rally. He pitted the token against more established and convincing altcoins like Ethereum.
“Ethereum is leading the 4th digital revolution and penetrating multiple markets starting from world financial system,” Mr. Gevorgyan told CoinChapter. “Then we have coins like Dogecoin who have a comparable market cap but just the community behind it. It’s a very simple bubble that will pop very soon. Ethereum has ambitions that are much bigger than its market cap right now. Dogecoin’s bulls are sleeping on wheels.”
Concerns led by the crypto industry’s veterans did little in offsetting Dogecoin’s bullish bias. On Twitter, the so-called Doge Army started trending #DogeCoinTo1Dollar, hinting at yet another retail frenzy mode ahead of Mr. Musk’s television appearance on Saturday. Earlier this year, an army of retail traders had collectively pumped beaten-down stocks like GameStop, led by administrators of a Reddit-based group WallStreetBets.
The DOGE/USD exchange rate expects to fluctuate wildly due to its excessive overvaluations, warns a classic indicator, the Relative Strength Index. The pair experienced a major sell-off after topping out earlier in the Asia-Pacific session.