What is happening to Dogecoin and its Cryptocurrency Signals

By siliconindia  |  Wednesday, 30 June 2021, 02:18:30 PM IST

What is happening to Dogecoin and its Cryptocurrency Signals

Dogecoin Co-Founder announced that he is buying DOGE for the first time in 8 years!

The announcement came shortly after a massive price crash that saw Dogecoin plummet more than 10 cents in less than 24 hours. Dogecoin recovered some of its recent losses after Bitcoin recovered from support.

After China's ban on cryptocurrency mining since Monday, FUD (fear, uncertainty and doubt) is widespread in the cryptocurrency market.

Because of this, Bitcoin's FUD dropped to $ 28,000 before prices rose sharply. The rest of the cryptocurrency market, including Dogecoin, followed the largest cryptocurrency in this downturn.

Over the past 48 hours, Dogecoin has surged from a low of 0.168240 to its current price of 0.2369, representing a more than 15% price increase as the bulls rush to buy Dogecoin and its safetrading.today from the traders of SafeTrading approved channels.

What makes Dogecoin a good investment right now?

Billy Markus, one of the creators of Dogecoin, announced that he had bought a certain amount of Dogecoin for the first time in eight years since 2015, when he sold all of his shares, despite the sharp drop in prices in the market era.

"An hour ago I bought Dogecoin after 8 years of promising never to buy crypto again. Since then I have checked the price 7 times. I had 10% profit, now I am back to 3% profit."

The crypto community believes that this acquisition could be an optimistic potential for the project, relying on the experience of the developers, which made them think that now is a good time to buy Dogecoin.

The co-founder left the project a few years ago and announced in 2015 that he was selling his assets because the cryptocurrency was deemed "dead", which he believes was flawed in retrospect.

In his recent tweets, Marcus tried to protect the prospect of wider market cycles from the recent drop in the cryptocurrency market, stating that two months is probably too short a time frame to announce the start of a bear market.

Billy Markus and software engineer Jackson Palmer developed Dogecoin in 2013, initially as a joke on Bitcoin and the nascent crypto industry (At least the SafeTrading team gathered such info).

Both founders who created the project sold their original assets shortly after its inception and development has supported them ever since. While Billy Marcus still remains an active voice in the Dogecoin community, Palmer has largely stepped back from the public. However, as previously reported by us; Concerned about Elon Musk's dominance over cryptocurrency, Palmer has broken his silence in recent months and severely insulted Musk with his own cryptocurrency signals.

In a now-deleted Twitter post, Palmer sharply criticized the strongest supporter of his work, claiming that Elon Musk was and always will be a smug con man.

Dogecoin is becoming one of the most falling cryptocurrencies.

Dogecoin, a cryptocurrency that started out as a joke and was touted as Elon Musk's favorite cryptocurrency, hit its lowest level since early April yesterday, driven by a wider sell-off in the cryptocurrency markets.

Dogecoin is becoming one of the most falling cryptocurrencies

What's the reason this time? Last Friday, as part of the latest step in China's war against cryptocurrencies, the Sichuan provincial government ordered the 26 largest cryptocurrency mines to shut down until the authorities complete their investigation.

The Chinese authorities already gave investors an unpleasant surprise last month by stating that digital currencies should not be used as payments and banning financial institutions from offering crypto services. They also limited the country's bitcoin mining, the process of creating new digital currencies, and supporting blockchain technology.

What does Dogecoin have to do with it?

Dogecoin was created in 2013 by software developers Jackson Palmer and Billy Markus. Based on materials from the popular site of the Japanese Shiba Inu breed.

Dogecoin started out as a spoof, but even after Tuesday's plunge, it boasts a market cap of $ 24 billion, higher than most other legitimate cryptocurrency projects.

After all, you might be wondering why Dogecoin has accumulated so much more than any other cryptocurrency. The answer is simple, we suspect this is because Dogecoin is in "high beta".

When other cryptocurrencies rise in value, Dogecoin tends to go to the moon. But when other cryptocurrencies fall, they fall even more.

This is exactly what happened this week. The latest offensive from China led to the fall of several popular cryptocurrencies such as bitcoin and ether - in the blink of an eye, bitcoin fell below $ 30,000 and virtually nullified almost all of its 2021 gains.

Dogecoin's tumultuous few months.

Dogecoin speculators in recent months have faced breakneck speed, in part due to their hypersensitivity to market news and a series of bullish tweets by Elon Musk, known in many circles as the "Fed" of the cryptocurrency world. Since the beginning of the year, it has grown by almost 4000%.

Dogecoin quickly became Musk's favorite. Placing dogecoin on Coinbase Pro last month gave the cryptocurrency some legitimacy to this joke (Dogecoin is already listed on Coinbase, but not on Coinbase Pro).

What should Dogecoin crypto investors do now?

All things considered, where does Dogecoin stay? Given its volatile nature, is this a classic case of a daily downturn that is corrected later?

The problem with Dogecoin, as with all cryptocurrencies, is that it has no fundamental use or value, to the point that even the project's own co-founder Marcus said earlier this year that cryptocurrency is a good "barometer" of how corrupt it is. digital currency. reality.

So even if Musk tweeted in favor of the Doge, it's more likely that the speculators eventually woke up and realized that this was not serious, which shouldn't come as a surprise in the first place.

As for the broader cryptocurrency market, the impact of the recent crackdown in China is less certain.

Some industry experts (For example, SafeTrading team) fear that the tough measures could only push cryptocurrency miners to travel outside China. So, if this happens, the impact on the market may be calmer. But if China's regulatory measures do slow the pace of crypto activity, investors are likely to feel even more worried.

ON THE DECK

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