Litecoin Creator Praises Dogecoin, Can The Token Get Its Bark Back?


Amid quick hesitations between Polkadot (DOT), Terra (LUNA) and DOGE, Dogecoin (DOGE), a cryptocurrency project that started as a joke but has now taken on a much more powerful persona, continues to compete for a place in the top 10 cryptocurrencies based on market capitalization.

Last year, Dogecoin went through two bullish phases. While the first leg was fueled by Robinhood’s adoption of the meme coin, the second was spearheaded by Tesla CEO Elon Musk, who earned the moniker “Dogefather” for his unwavering support for Dogecoin. Many observers believe that the “Elon Musk Effect” is the only bullish thesis for Dogecoin because Musk’s persona has such a strong influence on the meme coin’s prospects. Now the creator of Litecoin has praised the meme coin and called Elon Musk great.

Meme Coin praised by Litecoin founder

Charlie Lee, the founder of Litecoin, one of the most valuable crypto assets by market cap, has praised Dogecoin, a popular meme coin, for its contribution to mainstreaming the crypto business.

Charlie Lee, in a recent Bloomberg interview, described Dogecoin as “great” and “pretty fun”.

He thinks that the most popular meme cryptocurrency is ready to attract a large number of new users.

Given the role both have played in bridging the gap between the crypto industry and the general public, his credit for Elon Musk and Dogecoin is expected.

On his Twitter page, SpaceX CEO Elon Musk has talked about digital assets multiple times. Aside from that, his electric car company, Tesla, now takes Dogecoin as a form of payment for its goods.

Related article | Recap 2021 Memecoin Mania: Dogecoin, Shiba Inu and more

Dogecoin price has suffered setback

DOGE plunged 35% after starting to fall on Jan 16 and stayed below the Dec. 4 low of $0.128 until last week. After the dip, the token has consolidated around the $0.14 demand zone, and continued buying momentum over the next 24 hours could push the price towards the 50-day simple moving average (SMA) at $0.16. There is also the possibility of reaching $0.194 where the 100-day SMA is located.

However, crypto investors buying on the highs have not fared well over the past nine months.

According to CoinMarketCap Data, the Dogecoin price has fallen by 81% since May 8. 1 Doge is currently worth 14 cents.

Dogecoin market cap at $18.2 billion. Source: Trading Display

Despite the decline, the dog token still has a market cap of $19 billion, accounting for 1.1% of the entire crypto market.

The price of the Dog token is expected to hit $0.16 this week, according to FXStreet. That is an increase of 15% above existing prices.

From January 16 to 22, Dogecoin fell 35% in 6 days, according to FXStreet. But since then:

“DOGE has produced a sideways move pointing to consolidation around the $0.14 barrier. Any short-term spike in buying pressure is likely to propel [the] Dogecoin price up 15% to $0.164. This level coincides with the 50-day Simple Moving Average (SMA).”

Related article | Downward DOGE: Descending Dogecoin Pattern Predicts Deadly Drop

Featured image from Unsplash.com, charts from TradingView.com

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