Over the past week, this altcoin has risen in price by 433% and took 8th place among the largest cryptocurrencies in terms of capitalization. Experts explained the growth of a digital coin and what prospects it has in the future.
Over the past few days, Dogecoin has more than doubled in price and updated its all-time high at $ 0.33. The growth for the week was 433%. Due to this, the capitalization of the altcoin increased to $ 38.6 billion. It took eighth place among the largest cryptocurrencies, according to CoinGecko.
The rise in Dogecoin price occurs against the backdrop of publications by Tesla CEO Elon Musk, who has mentioned altcoin twice on his Twitter page in the past few days.
However, many analysts claim that there is no real rationale behind Dogecoin’s current growth phase. This altcoin is very much related to the general mood of investors on the crypto market. It is a kind of indicator of the emotional state of market participants, reflecting their expectations.
Investors are waiting for a new round of bitcoin price. The leap of the first cryptocurrency to $65 K inspired the crypto market participants, and optimistic forecasts keep to dominate. It should also be noted how the share of other digital coins is growing. All of these factors built a climate for Dogecoin to grow.
Dogecoin is a nice tool in the hands of a professional trader who knows when to enter an asset and when to exit or short it.
There are several reasons
Now Elon Musk is the main inspirer for the growth of many assets and not only in the crypto industry. Considering how many people read the social networks of this notorious entrepreneur, just one tweet is enough to provoke a rapid growth in the asset.
Also not to be forgotten is the recent announcement by the Dallas Mavericks National Basketball League (NBA) owner, Mark Cuban. The entrepreneur tweeted on April 14 that his basketball team had amassed over 120,000 Dogecoins in a month. In March, the Dallas Mavericks became the first NBA club to sell tickets for their games with Dogecoin. Mark Cuban noted that he is not going to sell any digital coins.
Coin prospects
Dogecoin and similar coins are likely to be subject to such “verbal interventions.” This altcoin can only grow further if it continues to be talked about. If there are no more mentions of Dogecoin, then a collapse will occur since the trading volumes of the digital coin are not very large.
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