- A viral TikTok challenge has helped Dogecoin to generate wider attention
- Trading volumes involving Dogecoin skyrocketed almost 2,000% over the last two days
- DOGE/USD hit the highest levels since October 2018, now up 100% on the week
Dogecoin (DOGE) price has exploded over 100% higher this week after a viral TikTok challenge. Trading volumes also erupted to help facilitate a move to levels last recorded in October 2018.
Fundamental analysis: TikTok helps DOGE
Dogecoin trading volumes skyrocketed almost 2,000% over the last two days, as TikTok users asked the audience to invest in the cryptocurrency.
Jackson Palmer, co-founder of Dogecoin, called it a “joke cryptocurrency”. Dogecoin’s daily volume was under $5 million over the last 2 months.
“The recent rise of dogecoin, a meme coin, should serve as a reminder to everyone in the space that the most popular use case for crypto is still purely speculation,” said Anil Lulla, one of the founders of crypto research company Delphi Digital.
The number of online searches for “how to buy DOGE” surged from 25 to 100, a maximum popularity score, shows 12-month Google Trends data analysis.
TikTok user “jamezg97” was the one who posted the #DogecoinTiktokChallange, which reached nearly 500,000 views since Tuesday.
“Let’s all get rich!”, the post said, pointing out that Dogecoin was “worthless” at the moment, but 800 TikTok users could change that.
“Once it hits one dollar, you’ll have $10,000. Tell everyone you know,” the person wrote in the post.
However, even the official Dogecoin account made comments on the matter on Twitter and warned against recklessly joining the popular challenge.
It remains unclear if the TikTok challenge is just another “pump-and-dump” scheme, where plotters encourage the audience to invest and artificially inflate the value of a currency which they then sell and capitalize.
Qiao Wang, a startup investor and crypto trader, said Dogecoin has a unique selling point to meme enthusiasts, compared to other cryptocurrencies. He said that the value of most digital currencies “comes from monetary premium,” while “Dogecoin’s value comes from memetic premium.”
Technical analysis: DOGE price screams higher
Similar to some other digital coins, DOGE/USD erupted higher on Monday. These moves have no real fundamental background, hence it may be whales shifting the assets in thin liquidity. However, the Dogecoin challenge then took over to launch the price action into the sky.
As a result, DOGE/USD traded above $0.0056 yesterday for the first time since October 2018. The price action then rotates lower the close below the 2019 high around the $0.0050 mark. The buyers have launched another attempt today to retake this level, but have failed to do so.
DOGE/USD now trades -2.5% on the day, at $0.00469. The pair is up around 100% on the week.
DOGE/USD has screamed more than 100% higher this week after a viral TikTok challenge helped the coin attract wider attention. As a result, DOGE price hit the highest levels since October 2018.