Dogecoin is gaining momentum following Elon Musk’s latest tweet about it.
Cryptocurrency-savvy Reddit users have also contributed to the market frenzy.
The DOGE, which started out as a joke, is starting to gain credibility.
Dogecoin (DOGE) is once again at the forefront of massive gains. The assets appear to be riding the relentless wave of promotion from Tesla CEO Elon Musk.
Dogecoin appears to have maintained a steady advance over the week. After showing a few consistent signs, market players have now continued to build on that euphoria following Elon Musk’s tweet.
Elon Musk: Another DOGE tweet, another price hike
On February 4, the asset itself rose another 50% shortly after Elon Musk’s last tweet . Traders interpreted this as a signal, which resulted in further buying.
In December, Musk tested the ground again, via twitter . In January, assets, which rose 250%, proved to be very volatile. This took the price from $ 0.007 to $ 0.07.
The course’s action subsequently calmed down. Dogecoin is now hovering around $ 0.045 and could point towards further progression.
Redditors have also been a huge contributor to the massive dogecoin price action after traders shifted their focus from GameStop (GME) to other assets. Investors in r / WallStreetBet turned their attention to cryptocurrency after the suspension of trading activities on Robinhood.
They achieved this by flooding Reddit with posts , suggesting that investors should quickly take long positions on DOGE. Musk isn’t the only notable person to have contributed to the Rising Frenzy.
On Monday February 1, former rockstar Gene Simmons announced that DOGE was part of his cryptocurrency holdings. He noted that this was not investment advice. Simmons also admitted to owning XRP and other cryptocurrencies.
Dogecoin is gaining momentum
Dogecoin, which may have started as a joke, has grown into a credible cryptocurrency. On Monday, Kronos Advanced Technologies, a publicly traded company, announced that it will receive the DOGE in payment.
Likewise, the BitMEX cryptocurrency derivative exchange has matched the popularity of DOGE. It will launch a permanent cryptocurrency swap contract on Friday, February 5.
The quote can allow traders to take positions as the new swap will have up to 20x leverage. BitMEX has already created a testnet for DOGE / USDT trading . The company said in the announcement that the contract will be visible as of January 4, 2021 at 4:00 UTC.