Dogecoin’s Tik-Tok Pump Failed: Coin Price Dropped To A Minimum
Last week, Dogecoin became a real star in the crypto
Last week, Dogecoin became a real star in the crypto market, and for the first time in terms of the number of references in the news feeds, it competed with Bitcoin. But the hype around the coin quickly came to an end, and the artificial rally turned into a sharp drop in the price of Dogecoin. What was the catch of this scheme?
Dogecoin failed to hold the bulls
The very appearance of Dogecoin altcoin in the crypto market in 2013 caused a mixed reaction within the crypto community. Who would have thought earlier that a coin that was “born” from the idea of a meme in 2020 will cause a real stir?
Since the end of 2019, Dogecoin has been heavily influencing by a downtrend. Attempts to raise the price of a coin above have failed. But on June 7, 2020, luck seemed to smile at Dogecoin: James Galante launched a coin support challenge on the popular Tik-Tok platform. He appeared in a video to users of the platform with an appeal to invest $25 in Dogecoin, then to get back $10,000.
James Galante himself did not expect what effect this action would have on users. The audience of Tik-Tok instantly picked up this challenge: the video gained more than half a million views and a huge number of people who wanted to “get rich” using Dogecoin.
Hype produced a bomb effect: Dogecoin price rose 89.5% from $0.0023 to $0.00522 in just 2 days after the publication of this video. Dogecoin’s pumping caused a wave of condemnation within the crypto community, despite a notable improvement in the coin’s market capitalization. As you would expect, Dogecoin price pumping quickly stopped. As a result, the price of DOGE slipped to $0.00362.
What does Dogecoin have to do with COMP token?
Some analysts note that Dogecoin’s behavior model resembles the price movement of the COMP token, which is a development of the DeFi platform. This coin showed tremendous growth immediately after launch: in just a few days, the price rose to $372.27. The rally of the coin caused by the hype that was created in the information field due to the popularization of DeFi.
But the bulls were not supportive of the coin. COMP token was influenced by a downtrend, as a result, the price dropped to $176.57.
Thus, Dogecoin has become a great example of how aggressive bullish pumping prices can turn into a complete failure. Some analysts convince that the Dogecoin price rollback will continue and may cast doubt on the coin’s viability.