Dogecoin hit new highs of $0.6953 in the early hours of Wednesday, but fears are growing that the joke cryptocurrency could be on the verge of suffering a whiplash-inducing crash.
It seems the grand finale for DOGE’s bull run could come at the weekend, which is when Elon Musk — one of the altcoin’s biggest fans — will host Saturday Night Live.
Although there’s no shortage of euphoria on Crypto Twitter (with bold predictions anticipating that DOGE could hit $1 or $5 in the not-too-distant future,) some are drawing parallels to what happened with XRP all the way back in 2018.
History Repeating Itself?
On Twitter, @lowstrife posted two charts side by side — one showing XRP in 2017-18, and the other showing DOGE. They went on to write:
“Each of DOGE’s major rallies this year has been smaller and less aggressive. What took 18 hours at first has been ongoing for 2 days now. I suspect this is the final push before it's all over for good. May 8th is the day to watch.”
Dogecoin’s most recent gains might seem impressive in monetary terms, but earlier rallies were much more significant from a percentage point of view.
XRP had hit record highs of $3.84 on January 4, 2018 — prices that have never been replicated since. Prices then fell through the floor. One month later, XRP cost $0.83… meaning that those who bought in at the top would have lost 78% of their investment.
Perhaps the most fitting analogy of what’s happening with DOGE comes from @schweigert42, who said:
“People like DOGE because it’s a game of ‘chicken.’ Everybody knows somebody is going to get burned but the game is fair and glory be to the one who rides it closest to the crash.”