85% of Dogecoin rally shows Wall Street betting is yet to be done with DOGE

After garnering attention with a 980% pump on January 28, Dogecoin (DOGE) briefly entered the top 10 in the market cap ranking for the first time since 2015. Once the massive pump lost some of its power momentum and traders quickly took profits, it looked like investors would move beyond memes-based cryptocurrency and find something else to invest in.

The pump started when trading prevented retail traders from buying more GameStop and AMC shares on January 28. Fueled by the Reddit r / Wallstreetbets discussion group, the army of investors turned to cash and a selection of “ cheap ” cryptocurrency.

On January 28, Twitter user “WSB Chairman” asked, “Has Doge ever gone to a dollar?” to its 750,000 followers. That was enough to trigger the rally of the monsters, although Dogecoin has not had any upgrades or protocol developments since 2015.

The 68% retracement that followed the $ 0.087 peak looked like Bitcoin’s (BTC) sharp drop after the December 2017 crash, except this time around, instead of 50 days, it only took 24 hours.

Several influencers and social media streamers have expressed unhappiness with buying the top, an indication that the momentary speculative frenzy has passed. After spending most of Jan. 30 and Jan. 31 at around $ 0.03, DOGE managed to produce another 80% pump in under three hours.

It is almost impossible to find the exact trigger for these events, as there are several social networks, including private Telegram groups and trading signals apps.

Reddit’s r / SatoshiStreetBets currently has 213,000 active users, and following DOGE’s breakout, a post from user Woke_AF_Populist quickly rose to their top-voted list.

There seems to be endless support from Dogecoin fans, including Tesla CEO and Founder Elon Musk. The lack of a concrete use case for the coin certainly raises the question of whether r / WallStreetBets members will exit traditional markets and embrace the generally unregulated ethos of the cryptocurrency industry.

Whatever the outcome, from now on, the measurement of social activity will become a standard instead of an alternative indicator.

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