Dogecoin (DOGE) Price Tanks 20% Below $0.050 After Elon Musk Encourages Holders to Sell Their Coins

After advocating his followers to buy Dogecoin over the last week, Tesla CEO Elon Musk seems to have a change of heart. In his recent tweet made on Sunday, February 14, Elon Musk said that there’s too much concentration of holding DOGE by the big players.

Thus, he has advised major Dogecoin holders to sell their coins in order to receive his continued support. “If major Dogecoin holders sell most of their coins, it will get my full support. Too much concentration is the only real issue imo,” tweeted Musk.

Going a step further, the Tesla CEO has added that he will actually pay the Dogecoin holders if they void their accounts. Well, it seems that Elon is just trying to bring a lot more participants in the Dogecoin ecosystem rather than just some few big players hoarding them.

Following these tweets from Musk, the DOGE price collapsed almost more than 20% going below $0.050. However, it has been picked up from this bottom and is back again on northward trajectory.

At press time, as per data on WorldCoinIndex, DOGE price is down 4.31% and trading at $0.059 with a market cap of $7.41 billion. The Dogecoin rally was started last month by the WallStreetBets Reddit community members after they pumped the GameStop (NYSE:GME) stock taking Wall Street by storm.

Later, Elon Musk also joined the camp taking DOGE price to an all-time high of $0.084 and pushing it among the top-ten cryptocurrencies in the world by market cap. While the Dogecoin rally has slowed down since the last week, the investor-interest still remains high in this Shiba Imu-based meme cryptocurrency.

However, a few analysts have warned retail players to stay away from this frenzy. Speaking to CNBC last week, popular Bitcoin bull Ni Carter said: “Unfortunately a lot of retail punters are going to lose money on dogecoin in the long term because there’s really not much there in terms of interesting technology. The only thing it can really do is be zombified and stick around and be an empty shell for people’s expectations and for their entertainment.”

Similarly, speaking at CNBC’s Squawk Box show, Wall Street veteran and Galaxy Digital CEO Mike Novogratz said: “Dogecoin reminds me a lot of GameStop. It’s a meme. It was funny for a little bit but now it’s at a market valuation where people are going to lose lots of money in doge. Bitcoin has a real purpose, Etheruem has a real purpose, lots of the stablecoins have a real purpose. Doge is kind of a meme, kind of a joke.”