Report said that rapper Snoop Dogg and American musician Gene Simmons have expressed their support for Dogecoin (DOGE), as the altcoin’s price has rallied once again by 27% on February 7.
So … it’s finally come to this … pic.twitter.com/Gf0Rg2QOaF — Elon Musk (@elonmusk) February 7, 2021
It has been reported that after the GameStop and Robinhood saga, many traders rushed into the cryptocurrency market.
However, DOGE was the first cryptocurrency that saw retail fear of missing out (FOMO), especially among the r/WallStreetBets community members.
#stonks pic.twitter.com/kfijAzsibw — Gene Simmons (@genesimmons) February 8, 2021
On February 6, Simmons wrote:
“Yup. I bought even more Dogecoin.”
He added:
“Why? Because I believe it will go up. But that’s just me.”
Also, Simmons has posted a tweet of a beginner’s guide of Dogecoin.
What is Dogecoin? – DOGE Beginners Guide https://t.co/UKQoUDCT2j via @YouTube — Gene Simmons (@genesimmons) February 8, 2021
On the other hand, Snoop Dogg tweeted a picture of Dogecoin by editing his name into “Snoop Doge.”
@elonmusk pic.twitter.com/KElwKghpei — Snoop Dogg (@SnoopDogg) February 6, 2021
The report said that when DOGE begins to rally due to an unexpected catalyst, like Elon Musk’s DOGE meme or a r/WallStreetBets-fueled pump, it often sees an explosive uptrend in a short period. Traders are urging caution in dealing with Dogecoin.
@SnoopDogg @elonmusk @genesimmons pic.twitter.com/xjbHqIWz0p — Gene Simmons (@genesimmons) February 6, 2021
Likewise, Donalt, a popular and pseudonymous cryptocurrency trader, said that the amount of “normie shilling” around DOGE is unprecedented. The trader emphasized that DOGE for the long term is not a favorable trade, and it will eventually come down, so traders need to approach it with caution.
He wrote:
“The current DOGE situation is quite funny. Don’t think we’ve seen this amount of normie shilling in this space before and it’s for our beloved silly DOGE coin of all things. Every other day another celeb comes out talking about DOGE. I see zero reason to counter trade that. That said if you’re trying to get into DOGE for the long term – You’ll give back everything you’ve made. So, sell partials on the way up or try to time the top by analyzing how much steam is left in the normie shill tank. Buying DOGE should only be done with selling in mind.”
The trading volume of DOGE briefly surpassed Bitcoin on Binance. This means that there is currently a lot of hype at the moment, which also suggests that a pullback should not come as a surprise.
Thus, the funding rate of DOGE is significantly above average at around 0.1%. This makes a long squeeze likely, which could cause a short-term drop if cascading liquidations occur.
Source: Cointelegraph