- DOGE pumped around 1,000% last week, with the WallStreetBets crowd piling in
- Despite crashing 70% from its high, plenty are still expecting further gains to eclipse what they have just seen
- What does history tell us about their chances?
Dogecoin enjoyed a 1,000% pump last week on the back of the WallStreetBets crowd finding out about cryptocurrency (before Robinhood stopped them), but many bought in at the top and have seen massive losses since. However, plenty are publicly sticking to their guns while predicting that the moon is still in sight, but what are the chances that they will end up being the next generation of DOGE bagholders instead of newly minted millionaires?
DOGE Bagholders Remain Bullish
Last week’s headline-making DOGE pump was something that brought back memories of 2017 for those who were around at the time, but there was something very different about this one – it was driven by a coordinated group of crypto outsiders. The WallStreetBets gang, forced to turn to crypto after various trading apps blocked them from trading AMC and GME, piled into DOGE, sending the beast rocketing 1,000% in the space of a few days.
The mammoth move caused the kind of euphoria normally seen at the end of a bull run, with a similar outcome – the token has dropped 70% in price. However, a huge number of top-buyers don’t seem to be put off by the retrace, proudly proclaiming their bullish sentiments, despite being down thousands of dollars:
The fact that some buyers are waiting for DOGE to “take off’ when it is already on its way back down doesn’t bode well, but is there anything in DOGE’s history that can give these newly crowned bagholders hope?
History Not on Bagholders’ Side
Historically, DOGE is a very pumpy coin. As we can see, over the years since its inception it has enjoyed huge spikes on numerous occasions:
This could be translated as good news for those currently in the red with their bags, but the picture isn’t that rosy when we look at the type of pump we just experienced. DOGE has only undergone a pump of such magnitude three times in five years, and one of those was last week.
The last such pump was over three years ago in 2017, and before then we have to go back to late 2013 and the launch of DOGE on exchanges to see a similar increase. There have been smaller pumps in between, but that is no good for those who bought near the top of last week’s pump.
Prepare to HODL
Given this information, is it likely that DOGE has enough gas in the tank to repeat the feat of last week and head back up to such dizzying heights? With the WallStreetBets crowd of course we have to say that nothing is impossible, but having already pumped so hugely once, the odds of DOGE doing so again in such quick succession are very, very low.
History tells us that instead of a mind-bending pump that turns their red bags into profit-laden green ones, what all these new buyers should prepare for instead is a slow, steady grind back to prior lows and a long, long wait before they will break even.