Dogecoin captured more interest from blue-collar traders than any other but its price shows no new progress, like XRP
As AZCoin News reported, Bitcoin price rose to $50,000 and fell below $48,000, continuously showing its bullish momentum but it seems that Dogecoin (DOGE) is not. At the moment, the Dogecoin price seems to have lost its upward momentum and is only trading at $0.28.
DOGE/USD 4-hour chart | Source: TradingView
Three Arrows Capital CEO Su Zhu outlines his bullish thesis for Dogecoin price
In a new episode of the Uncommon Core podcast, Su Zhu, CEO of crypto hedge fund Three Arrows Capital said he’s very bullish on Dogecoin (DOGE) for a number of reasons. Firstly, he said that the leading meme coin has captured the attention of common people outside the crypto space better than any other digital asset on the market.
“I’m very bullish on Dogecoin. I delved into the community, delved into what’s been happening and what’s kind of the broader thesis for people that own Doge, both in terms of normal people as well as investors…,” he stated.
Su Zhu, CEO of crypto hedge fund Three Arrows Capital
The crypto guru cites DOGE’s vast dominance among retail investors on the popular Robinhood trading app as an example of the coin’s strong brand recognition.
“The best way to understand DOGE, I think, is that if you look at Robinhood, which is sort of the most blue-collar style of crypto investing, DOGE is 60% of their crypto revenue. And crypto is 40% of Robinhood’s revenue, so Robinhood is basically a DOGE proxy. And I think that DOGE has four times the name brand recognition over Ethereum in many communities in the US. Not talking about like smart people, but just talking about people,” Zhu added.
Zhu says that DOGE has a simple message of being dog money that makes it more accessible to the average person.
“I think that there’s something just very understandable about DOGE. It’s just like the ‘dog money,’ you put your money in ‘dog money’… I think that DOGE is really underestimated in terms of that sheer virality, and sort of the quality of the memes and the organicness of that…”, he concluded.
Zhu even compared DOGE to XRP, which has faced a protracted regulatory battle with the US Securities Exchange Commission more recently, but posted a 36,000% increase in 2017.
“It kind of reminds me of XRP in the previous cycle, which is better in every way, because one, there is no Foundation that has a ton of it. There’s no reliance on an elaborate bank using it for payments narrative. It is just simple. And it’s also fair launched by the way. So there’s no risk of having it ever be deemed a security, right?” he added.
Despite many positive words for DOGE, this motivation was not enough for the price to rise. Perhaps, no amount of support from big names in the crypto market can be compared to a tweet of billionaire Elon Musk.
On July 19, trading volume for DOGE increased by more than 13 times during the second quarter of 2021, nearly tagging $1 billion daily. According to data compiled by Coinbase and reported by Business Insider, DOGE trading volumes soared 1,250% between April and June, with $995 million worth of DOGE changing hands daily on average during the quarter. By comparison, Dogecoin’s average daily volume for the first quarter was $74 million.
Dogecoin started the year priced at just $0.004 and saw its first uptick in early February when prices jumped 50% when Musk embarked on his Twitter-shilling campaign in support of the meme coin.
Despite many crypto commentators attributing DOGE’s meteoric 2021 performance to Twitter-shilling from Musk, maybe Dogecoin’s impressive performance would not have been possible without the spate of DOGE listings on major exchanges witnessed during Q2 – including Gemini and eToro in May, and Coinbase in June.
Despite the record rally, DOGE suffered extreme losses since its all-time high, having plummeted 75.3% from its May 8 all-time high of $0.73. However, DOGE is still up 4,425% since the start of 2021.
For the past one week, DOGE has only been trading in a narrow range of $0.28 – $0.32, not showing bullish momentum even when Altcoin season is signaled to have arrived.
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