After a week of extreme volatility and speculation, several traders were waiting for Dogecoin to rise to a new high after the richest man in the world appear on Saturday Night Live. In great anticipation of his debut as the Tesla CEO on SNL, the price of the token rose to about 100% in the previous week. Last Friday, DOGE hit a new high of $0.71 which is a massive price growth witnessed by this digital currency.
To a great disappointment of the community, the appearance of Musk saw the token dropped about 30% in less than a trading hour. The price dropped from $0.69 to a new low of $0.49 before rising back to $0.55. Currently, the price of the token is $0.53.
This massive and disappointing plummet in Dogecoin price made the token lose about $27 billion in market capitalization. Based on data from ByBt, the futures trades vying for Dogecoin lost over $300 million in just 24 hours.
In a crafted perspective, BTC and ETH, the leading assets in the crypto market, both saw over $350 million combined in liquidations in the previous 24 hours. It is noteworthy to know that the duo worth $1.52 trillion in market capitalization and $120 billion in daily trading volume, which is gargantuan in comparison with DOGE’s numbers.
Without a second thought, the Tesla CEO has been a major proponent of the success of Dogecoin. Other prominent persons have also contributed to this success of the once-neglected altcoin, such as Mark Cuban, who declared himself as the “Dogefather” and expressed huge support to the altcoin.
Several speculators in the market bought into the altcoin in high hopes that Elon Musk dropping the Dogecoin name in his opening monologue will cause a rise. In retrospect, not even about 93 minutes of hyping the altcoin could cause a positive shift in the price.
A possible explanation for the circumstance could be that Dogecoin mentions were way too few and well-spaced causing a huge disappointment for traders and speculators.
Another possible reason could be the outages Robinhood suffered. Based on information from the brokerage, the crypto exchange limited its users from trading for close to an hour.
While the exchange announced service resumption by 9:52 PM PST, the price of Dogecoin dropped by 10% in just 10 minutes. This could be that the accumulated orders executed upon resumption caused the drop. Currently, no one can say whether the price of the altcoin will rise past the all-time high anytime soon.