The TikTok Dogecoin pump was looking close to a realization this morning as the crypto shot up to a high at $0.005 with a 143% increase to highs in the last three days.
The price of DOGE at 14: 45 hours UTC on 8th July 2020 is $0.0039 ( 42 sats w.r.t. BTC). A few months ago the probability of an astronomical pump would have been high. However, after the spread of coronavirus, and the rising tension with India and the US, the chances have become rather slim.
Geo-Political Tension with China
The Donald Trump administration is looking at banning Chinese Apps like TikTok over suspicious of espionage. India, one of the largest user bases for TikTok already implemented the ban over the military tension across the Ladakh border.
Indians accounted for 43.7% of the number of downloads in 2019. The majority of users left on the TikTok/Douyin app is in China. Hence, there is a low probability of it becoming a global phenomenon.
Moreover, apart from TikTok, the millennials spreading the DOGE coin hysteria have emphasized the use of Robinhood mobile application. Robinhood is available only to the citizens in the US, many other newbies to this space could still find it difficult to purchase Dogecoin on exchanges.
Furthermore, some of the users are not even sure if DOGE coin is a cryptocurrency or a stock.
Apparently $DOGE is a stock and they are hosting non anon pump and dumps on tik tok
I’m just gonna leave this here pic.twitter.com/JFvwLwUYlB
— Wendy O (Watch CoinHQ.tv) (@CryptoWendyO) July 7, 2020
Technical Analysis
On a weekly scale, the price will look to consolidate above the 50-EMA at 44 sats before the confirmation of the first level of a break-out.
The All-Time in DOGE coin is $0.018. With respect to BTC, it is around 300 sats; which is around 7.5 times its current valuation. The current pivotal support and resistance along the previous highs are significant levels of break-out before a new bullish trend can be defined.
hope v reality #doge pic.twitter.com/HUOXBF64ZM
— TraderSZ (@trader1sz) July 8, 2020
It is easier to say that a social media trend can drive an asset to $1 valuation. However, with respect to its supply, it would imply a market capitalization of $125 billion (which is 45.8% of total crypto market capitalization). Moreover, the social media trends usually spill on other platforms like Instagram and Twitter which hasn’t caught on the fire the buyers would expect.
How high can you think the DOGE pump can continue? Please share your views with us.
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Disclaimer
The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com
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