What the dogecoin army is saying as the cryptocurrency’s tumble triggers a bearish break in the long-term trend line – MarketWatch

A major tumble in dogecoin prices has one of the most popular meme assets in the doghouse with investors on Mothers Day at least for the moment.

Dont miss: Dogecoin price flops as Elon Musk hosts Saturday Night Live

At last check Sunday evening, dogecoin DOGEUSD, -2.66% was changing hands at 55 cents, according to CoinDesk. The virtual coin had been down by as much as 36% overnight, hitting a low of around 47 cents in New York.

Its drop has driven the crypto below its 200-day moving average, which stands at 51.99 cents, according to Investing.com. A move above or below a 200-day moving average a proxy for changes in an assets long-term trend is always closely watched by traders for bullish and bearish trends.

Sundays slump was seen by some as bearish for doge after anticipation around Musks SNL appearance, as a patron of crypto broadly and dogecoin specifically, failed to deliver a jolt to doge.

One Reddit user appeared to blame doges fall on a lack of conviction by investors in doge, which was created in 2013 as a lighthearted riff on the emergence of a wave of alternatives to the worlds most prominent crypto, bitcoin BTCUSD, +0.26%.

Paper hands refers to investors that tend to sell easily rather than adhering to popular a strategy in the crypto world known as holding indefinitely or hodling.

Bullish talk about dogecoin by the chief executive of Tesla Inc. TSLA, -1.88% and Space Exploration Technologies Corp., had been a rallying point for the doge community,which had been eagerly anticipating his appearance, but dogecoin owners who had hoped his mention of the digital currency on TV would boost its price toward $1 were left disappointed.

Doge devotees have very publicly set a target of $1 for the coin in 2021, a number that might seem extremely modest at first glance but not when viewed through the lens that Doge traded at $0.005 on the final day of 2020.

So far in 2021, doge is up over 10,000%, even factoring in its recent pullback. Gains in traditional assets have been pedestrian set against dogecoin. Gold futures GC00, -0.38% are down 3% so far this year, the Dow Jones Industrial Average DJIA, -1.36% and the S&P 500 index SPX, -0.87% are up by nearly 13% in 2021, while the Nasdaq Composite Index COMP, -0.09% has gained about over 6% so far this year.

NBC said that for the first time it livestreamed SNL internationally via YouTube in more than 100 countries, including Australia, Brazil and South Africa.

During SNLs Weekend Update, co-anchors Michael Che and Colin Jost pressed a fictional financial expert named Lloyd Ostertag, who was played by Musk, to explain dogecoin. His efforts werent successful: OK, but whatisDogecoin? was the constant refrain of the anchors. Eventually, they reach the conclusion, prompted by Che, that dogecoin is just a hustle.

Staunch supporters of dogecoin are advocating for investors to remain committed despite the major setback, which is likely caused by investors opportunistically deciding that it was a good time to take some profits on the speculative surge in doge.

Other purported investors in dogecoin on social media sites like Reddit implied that expectations for Musks SNL appearance to be a major catalyst for doge were likely overdone.

Some speculated that the decline in dogecoin was tied to large investor unwinding a big position:

Whale rumors come as Barry Silbert, a power player in the digital-asset sector, said hes betting against dogecoinand urged investors in one of the hottest trades in 2021 to convert their doge holdings into bitcoin via a Saturday tweet.

Silbert also said that he would donate $1 million to charity if dogecoin hit $1 by May 31.

The doge army, so far, has taken Silberts comments as an affront.

Still, others pointed to technical glitches on popular trading platform Robinhood Markets as contributing to some of the downturn in doge early Sunday.

Worth a read: A $25 billion dogecoin whale lurks, but Robinhood CEO says we dont have significant positions in any of the coins we keep

Popular financial blogger and CEO of Ritholtz Wealth Management in Midtown Manhattan, Josh Brown in a Saturday blog wrote that SNLs record spoofing on financial markets has tended to mark the top of most assets, including the speculative fervor around GameStop Corp. GME, +2.58% and nonfungible tokens, or NFTs.

I think its worth pointing out that Saturday Night Live has done lots of stuff about financial markets and the economy recently and the sketches have actually been pretty funny. Unfortunately, theyve also marked the top in price or enthusiasm for the underlying subject matter, he wrote.

In the end, the dogecoin army is trying to look on the rosier side of things. Early investors are still enjoying major gains.

Its the newbie investors who are facing the most pain.

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What the dogecoin army is saying as the cryptocurrency's tumble triggers a bearish break in the long-term trend line - MarketWatch