Dogecoin

Elon Musk

<p>Dogecoin is making headlines again. After a spectacular rise, the famous memecoin seems poised to reach new heights, fueled by the enthusiasm of crypto investors and the undeniable influence of Elon Musk. But behind this surge lies a crucial question: is it the calm before the storm?</p> 
<h2 id="h-an-excessive-enthusiasm-for-dogecoin">An Excessive Enthusiasm for Dogecoin</h2> 
<p>Dogecoin,<a href="https://www.cointribune.com/en/crypto-memecoins-are-soaring-driven-by-tiktok/" target="_blank" rel="noreferrer noopener"> the memecoin</a> par excellence, seems to have regained its legendary popularity. Its open interest in futures reached an impressive record of <strong>4.6 billion dollars</strong> on November 23.</p>
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<p>This figure, doubling the previous peak, reveals a spectacular enthusiasm. However, this frenzy is reminiscent of speculative bubbles that often end up bursting.</p> 
<p>This resurgence of interest coincides with a 224% increase in the price of DOGE crypto between November 3 and November 23, even as its value remains well below its historical peak of $0.74 reached in May 2021. Such a surge, driven by derivatives, raises questions about the sustainability of this trend.</p> 
<p>The history of Dogecoin teaches us that <a href="https://www.coinglass.com/fr/currencies/DOGE" target="_blank" rel="noreferrer noopener">these periods of euphoria</a>, where leverage is king, are often followed by brutal corrections.</p> 
<p>A notable precedent can be found in March 2024: after an 82% increase, DOGE saw its price plummet by 40% in a few weeks, leading to massive liquidations. This example highlights the dangers of excessive leverage, where quick gains give way to equally swift losses.</p> 
<h2 id="the-elon-musk-effect-and-its-limits">The Elon Musk Effect and Its Limits</h2> 
<p><strong><br></strong>Elon Musk continues to play a major role in the evolution of Dogecoin’s price. His tweets and initiatives, such as his involvement in governmental projects around DOGE, regularly fuel investor enthusiasm.</p> 
<p>However, Dogecoin’s reliance on this influence raises a crucial question: can it thrive beyond the <a href="https://www.cointribune.com/en/elon-musk-becomes-the-richest-man-in-history-with-347-8-billion-dollars/" target="_blank" rel="noreferrer noopener">Musk effect, who has become the richest man in history?</a></p> 
<p>At first glance, the current enthusiasm still seems linked to this support. However, unlike previous price increases, the recent movement appears to be driven more by the spot market, suggesting increased participation from traditional investors.</p> 
<p>This could mark a step towards a certain maturity, but signs of over-indebtedness persist.</p>
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<p>The funding rate for perpetual contracts, which reflects the balance between buyers and sellers, remains relatively neutral around 2%.</p> 
<p>However, sporadic spikes, like the one at 7.5% on November 23, show nervousness in the market. These fluctuations signal that leverage could quickly shift, triggering a cascade of liquidations.</p> 
<p>Despite its recent performance, Dogecoin appears vulnerable to a potential correction. If the Musk effect continues to play a catalytic role, it does not guarantee long-term stability. Cautious traders know that record open interest, although impressive, often hides underlying risks. Meanwhile, <a href="https://www.cointribune.com/en/asias-largest-digital-bank-opens-the-doors-to-crypto-trading/" target="_blank" rel="noreferrer noopener">the largest digital bank in Asia opens its doors to crypto trading.</a></p>

Crypto: Dogecoin Reaches New Heights, But Watch Out For The Drop!

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