Decoding the effects of 1M DOGE tip to Dogecoin Foundation

ambcrypto.com:

Out of all the meme coins, Dogecoin holds a special place for investors. And, further supporting the meme coin is DOGE-father Elon Musk, whose acquisition of Twitter initiated an almost 30% rally.

Recently, MyDoge Wallet’s MyDoge Tip, the arm facilitating the feature of sending and receiving tips on Twitter with DOGE, tipped one million DOGE worth $138,200.

The motivation behind this generous donation, as MyDoge Tip stated, was to support Dogecoin in becoming the people’s currency.

— MyDoge Wallet (@MyDogeOfficial) April 19, 2022

However, triggered by this development and by Elon Musk’s acquisition of Twitter, DOGE rallied by almost 30%.

Although this may sound good, this one day’s growth does not actually fix the losses investors have been facing for almost a year.

Far from its all-time high, the altcoin is yet to find stability even though it has almost recovered the 23.77% drop following the 55.77% rise the coin witnessed during the March to April rally.

Dogecoin price action | Source: TradingView – AMBCrypto

Talking about the DOGE investors, they are in no good position either. In the last 12 months, 1.52 million DOGE investors who have in losses represent almost 40% of all DOGE holders.

Dogecoin investors in loss | Source: Intotheblock – AMBCrypto

Furthermore, last week’s failure to register a successful rally affected investors’ confidence. Consequently, over 700k investors exited the market within a week. 

Following them, this week, another 50k DOGE holders have exited