Dogecoin, Caught Up In Reddit Frenzy, Remains Low After Rally

Dogecoin (DOGE), the digital currency originally launched as a joke, remains at less than half of the all-time high that it hit on Friday.

What Happened: The coin saw an 800% price increase last week and reached a record high of $0.07797 at one point on Friday.

The cryptocurrency known for its theme of a Shiba Inu dog was trading at $0.02996 today at publication time, according to data analytics platform CoinMarketCap.

The unexpected spike during the week appeared to be part of the same phenomenon that led to the huge increase in share prices for companies such as GameStop Corp. GME and AMC Entertainment Holdings Inc AMC. In the same vein as WallStreetBets, another Reddit group called SatoshiStreetBets has been trying to put Dogecoin on the same track as these heavily shorted shares.

Elon Musk on Thursday contributed to the buzz among over Dogecoin when he tweeted the cover of a spoof magazine called "Dogue," a play on fashion glossy Vogue, which Redditors viewed as his support for the cryptocurrency.

pic.twitter.com/a6kmk0PEgM

— Elon Musk (@elonmusk) January 28, 2021

If the coming week was anything like the last, it's anyone's guess as to where Dogecoin might be headed next.