Elon Musk at Saturday Night Live.
Everything about the cryptocurrency is a joke, and that is not necessarily said with any disdain for it. However, when people start believing in Dogecoin with their money, a cryptocurrency that was literally started as a joke, the deeply-rooted peculiarities of the asset should be made clear to everybody.
Traders should be made aware of the true potential of Dogecoin. Is it truly the future of crypto trading, or is it destined never to surpass its original purpose of making people laugh when they hear its name?
SNL, the Dogefather, and the Big Hustle
Hate him or love him, Elon Musk is quite a fascinating character. He said as much about himself during his opening monologue for Saturday Night Live (SNL), which ended up being the catalyst for a massive retracement in the price of Dogecoin. Musk began by alluding to the fact that sometimes he says things without giving them a second thought beforehand.
The Dogefather
— Elon Musk (@elonmusk) April 28, 2021
SNL May 8
This should be the wake-up call that so many Dogecoin enthusiasts desperately need. The price action of the asset continues to be devoid of any intrinsic value. Instead, the cryptocurrency advances at the whim of social media celebrities such as the self-proclaimed "Dogefather" and "Emperor of Mars", whose facetious approach seems to make Musk the perfect champion of traders with a sense of humour.
Elon Musk, who admitted on SNL that Dogecoin is indeed a form of a "hustle", seems to be amongst the very few who take the cryptocurrency for what it's actually worth - a joke with the established market order.
Cryptocurrency is promising, but please invest with caution! https://t.co/A4kplcP8Vq
— Elon Musk (@elonmusk) May 7, 2021
Making fun with the established order is not necessarily a bad thing. In fact, it could be quite uplifting given the highly competitive "normal" state of the market. However, misconstruing Musk's typically humorous tweets for attestation of Dogecoin's prospects is a mistake.
The magic support level at 420
The price of Dogecoin could indeed go "to the moon", as long as everybody believes in it. This is true of every financial instrument; however, Dogecoin seems to possess one unique quality. Everybody seems to be on board with the hype, or in this case, with the joke.
For the time being, the joke seems to be working in its own favour - garnering interest amongst traders precisely because it is such a novel and unique instrument. But again, a distinction should be drawn between its capacity as a speculative boon and alleged potential as a long term investment.
Dogecoin 4H Price Chart. Image source: Trendsharks ©, created with TradingView.com
As can be seen on the 4H chart above, the price of the crypto continues to advance within the boundaries of an ascending channel, despite the recent tribulations. It appears to be consolidating above a major resistance-turned-support, which in itself represents a joke of a kind - the support can be found at the 0.420 price level. Something that Elon Musk could really appreciate while on the Joe Rogan podcast.
At any rate, the Dogecoin remains a highly speculative instrument. Any ripple that could wipe out more than 20 per cent of the asset's value in a matter of hours demonstrates its unpreparedness to be considered as a long term investment.
While the prospects for future growth remain very much active, traders should not allow themselves to become the butt of a "bad" joke.
Over the past few weeks, the USD has lost nearly 800 pips against the JPY, driven by Japan's shift away from decades of negative interest rates. With the Bank of Japan raising rates for the second time in a row, investors are adjusting their positions to [...]
Despite its volatility, Silver remains in an uptrend. While not as dynamic as Gold, XAG often mirrors XAU’s movements. A Multiple Top has formed around $32.50, and history shows that the more a level is tested, the weaker it becomes, increasing the likelihood of a [...]
A combination of factors, including Trump-era tariffs, the emergence of DeepSeek, and a slowdown in GDP growth, has contributed to the recent pullback in the US30 from its record highs. From a technical standpoint, a Double Top pattern has formed around the [...]
Over the past month, Silver has experienced an impressive 13% surge, marking a strong bullish trend. Despite notable volatility and multiple pullbacks, the overall momentum remains firmly to the upside. This strength is further validated by the Golden Cross, a historically reliable [...]
The Swiss Stock Market has been on a remarkable rally, surging over 15% between December and January. At times, the price action resembled a near-vertical ascent. However, following the announcement of Trump’s tariffs over the weekend, Monday’s trading session opened with a [...]
Between October and January, GBPUSD experienced a significant decline, dropping by approximately 1300 pips. However, we now observe signs of a potential trend reversal. Over the past few weeks, the pair has rebounded by more than 400 pips, shifting momentum toward a [...]
For the past 1 month, the UK100 saw a fantastic 600 point rally! The occasional corrections only attracted more buyers, which is healthy for the current up trend and the RSI currently exhibits elevated demand. A 130 point correction started last week on Friday, dipped below the [...]
Over the past two weeks, Japan’s leading stock index surged 2,000 points, reflecting strong bullish momentum. However, this week saw a sharp sell-off, erasing nearly all gains since mid-January. Despite this drop, the decline stalled at the 61.8% Fibonacci retracement, a key [...]
There is a clear shift in the momentum in the Oil market, with the commodity dropping with nearly 10% for the past 2 weeks. The Death Cross, a classic sell signal, is indicating that sellers are indeed in control and we are lookin now at a strong [...]
The 350 pip rally for the past 2 weeks seems like a trend reversal for EURUSD, with buyers back in control. The strong bullish momentum is also confirmed by the Golden Cross, a historic buy signal. Corrections are healthy for the trend and we currently looking at [...]
For the past 2 weeks GBPUSD went up with 400 pips and this is why we believe we might be looking at a trend reversal. The strong bullish momentum is confirmed by the Golden Cross, a classic buy signal, which supports the hypothesis that [...]
The Death Cross formation in USDJPY signals a robust downward momentum, with the USD depreciating by 300 pips over recent weeks. Further declines exceeding 300 pips are anticipated, potentially reaching the 152.00 level. Despite several corrective pullbacks, the price has been unable to surpass the [...]
Following the formation of a Double Top pattern at the 21,930 level last Friday, the NASDAQ has experienced a significant decline, plummeting by nearly 800 points. This downturn has been primarily driven by unfavorable manufacturing data emerging from China, alongside the Bank of Japan's interest rate hike on Friday. The market reaction closely resembles the [...]
GOLD's uptrend has regained strength, with several factors supporting further gains. The RSI bounced from oversold levels and now stands at 65, signaling growing demand and increasing buying volume. Additionally, the appearance of a [...]
For the past few months, USDJPY gained 2100 pips! Then, about 10 days ago the USD started dropping and so far corrected with 300 pips, dropping down to 155.00. A local Double Bottom got formed and this level also aligns with the important [...]
For the past week, the US100 has surged by over 1,000 points, signaling strong bullish momentum. The RSI stands at 69, indicating high demand and buyer dominance. A bullish Golden Cross pattern has emerged, confirming the upward trend. Despite a brief correction yesterday, with the index dipping to [...]
The Descending Triangle on the 4-hour chart, typically a bearish signal, failed to materialize this time. Instead, the Triple Bottom support at 92,000 held strong, driving significant buying volume. A Golden Cross—a classic bullish indicator—confirms strong [...]
After a 300-point correction from its December highs, the SP500 appears to be rebounding as bulls regain control. This recovery is supported by positive economic data, including strong NFP numbers, low unemployment, and CPI readings meeting expectations—all favorable for stocks. Additionally, the earnings season began yesterday with [...]
For several months, the EUR has been trending downward, losing hundreds of pips. While occasional corrections to the upside occur, bears remain in control. The strong downward momentum is highlighted by the Death Cross pattern, a classic sell signal. Yesterday, we observed another [...]
The Dollar remains strong, with buyers firmly in control since the Fed's December comments hinting at fewer 2025 rate cuts. This drove a 400-pip rally in USDCAD, now facing resistance near 1.4450 as early buyers take profit. Corrections are part of healthy trends, and the pair is testing support at [...]
