BUSINESS NEWS

DOGE To Hit $0.1538 By May-end, Cryptocommunity Estimates; Whale Transactions Surge


KEY POINTS

  • Dogecoin is Elon Musk’s favorite cryptocurrency
  • The crypto saw a spike in price on Musk’s Twitter buy
  • Dogecoin was trading up 3.2% at $0.1437

Elon Musk’s acquisition of Twitter has had a bullish influence on his favorite cryptocurrency Dogecoin, which could explain the four-month high in whale transactions on the dog-themed token and a recent poll from a crypto community that forecast the digital currency would trade at an average of $0.1538 by the end of May.

CoinMarketCap, a cryptocurrency platform providing market cap rankings, prices, charts and analyses, among other things, has a feature called Price Estimates currently in beta testing, which allows users to place their estimates on a particular cryptocurrency for the next six months. The platform collects the user inputs, which ends every 21st of the month.

CoinMarketCap has collected some interesting data about what users think will be the average price estimate of Dogecoin by the end of May. So far, 1,872 users believe DOGE will trade at an average of $0.1538 by May 31, about a 7% rise from where it currently.

Dogecoin was up 3.2% at $0.1437, with a 24-hour trading volume of $1,232,266,741, as of 1:02 a.m. ET on Friday, based on data from CoinMarketCap.

Ilustration shows representations of virtual cryptocurrencies on U.S. Dollar banknotes Representations of virtual cryptocurrencies are placed on U.S. Dollar banknotes in this illustration taken November 28, 2021. Photo: Reuters / DADO RUVIC

Meanwhile, 777 users estimated that the world’s first-ever dog-theme altcoin will trade at an average price $0.1519, or 5.7% above its current value, at the end of June.

CoinMarketCap’s Price Estimates feature has historically predicted the price of Dogecoin with a 69.39% accuracy rate.

The crypto community is bullish on the dog-themed altcoin, probably because of the positive effect of Musk’s Twitter takeover. The same effect can be attributed to the renewed interest by Dogecoin whales, with transactions reaching a four-month high at 2,440, according to analytics firm IntoTheBlock. 

“The number of large transactions is a relevant metric tracking the count of transactions greater than $100,000,” IntoTheBlock said. “Since this sum of money is not available to the average retail trader on-chain, the indicator acts as a proxy to the number of whales’ and institutional players’ transactions.”

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