Lowstrife, a popular Twitter account, highlighted similarities between Dogecoin and XRP among warning signs that “the end” is near in a series of tweets on May 4.
DOGE/USD has been steadily rising this week, reversing previous losses to reach a new high of $0.47. The pair is up 7,000 percent year to date.
However, with major proponent Elon Musk set to appear as “The Dogefather” on Saturday Night Live on May 8, that date is quickly becoming a line in the sand for the meme-based altcoin’s fortunes.
Musk has fueled acceptance of Dogecoin’s gains as being based not on merit, but on the viral effect of memes, as he has made headlines for his alleged adoration of the cryptocurrency throughout the year.
Why tf does @elonmusk going on Saturday Night Live create the scenario to push DogeCoin to $1.00. Somebody please help me understand this logic?
— Jason A. Williams “Parabolic Guy” (@GoingParabolic) May 5, 2021
Should the tide turn, bagholders could face losses similar to those experienced following the end of the 2018 “alt season.”
The signs of the apocalypse are already visible on the spot market, according to pseudonymous cryptocurrency trader Lowstrife.
“This year, each of Doge’s major rallies has been smaller and less aggressive than the last. “What took 18 hours at first has now lasted two days,” Lowstrife said.
“I suspect this is the final push before it’s all over for good. May 8th is the day to watch.”
Echoes of XRP’s long-held all-time highs
The most recent phase of the DOGE miracle resembles XRP’s final push in 2018 before hitting its still-valid all-time high of $3.20. Following that, the pair gradually faded to a low of $0.14, a 95.6 percent loss.
For newer market participants, the current situation is all too familiar. Individual traders pushed the price of stock to crush short hedge funds in the GameStop debacle, which provided fertile ground for a copycat move in cryptocurrency.
Other than forcing trading platforms to do the work for them, regulators have no way to exert pressure on traders or restrict access to the asset itself, unlike with stocks.
The DOGE bullrun was an example of a casino-like market, according to Adam Back, CEO of Blockstream, who explained the phenomenon.
“Like a GME short-squeeze,” says the narrator. He argued on Twitter, “Not because the market agrees it has value, but because it’s rightly shorted as being devoid of value.”
“The more of a joke, easier to pump, whatever people will rally around a group pump and dump casino rug-pull.”