Dogecoin is currently trading at $0.075, which is a 27% pullback in the last 24 hours and more than 90% fall from its all-time high.
Dogecoin, the most popular meme crypto coin on the internet, rose to fame last year after Elon Musk disclosed that he would send it to the moon. Investors became more enthused about the asset after Musk had run a poll on his Twitter page concerning the possibility of making it a payment method for Tesla. On May 8, 2021, it recorded an all-time high price of $0.73. Its market cap surpassed that of General Motors Company (NYSE: GM) to hit around $90 billion.
However, the meme coin has taken a nosedive losing about 40% of its value hours after Musk’s SNL hosting debut. As the market was struggling to recover its value, it was hit by another mass sell-off triggered by the ongoing implosion of Terra.
The decision of Gucci and Tesla Inc (NASDAQ: TSLA) could not convince investors enough as the general happenings of the crypto market had more weight as a contributing factor. Dogecoin is currently trading at $0.075, which is a 27% pullback in the last 24 hours and more than 90% fall from its all-time high. Regardless, it is still in the top 10 CoinMarketCap rankings of the largest cryptocurrencies with a market cap of $10 billion. This makes it more valuable than Zillow Group Inc (NASDAQ: ZG) and ASUSTEK Computer Inc (TPE: 2357).
Susannah Streeter, market analyst at investment company Hargreaves Lansdown earlier warned that the price of Dogecoin is highly speculative.
“Gains are being fueled by frenzied chats across social media with influencers jostling for positions to push their favored coins. But like a slot machine, the coins being pushed into circulation are very much a speculative bet and investors should only dabble if they have money they can afford to lose,” she said.
According to Lawrence McDonald, former head of macro strategy at French banking giant Societe Generale Group, the rise of the Dogecoin crypto coin was a result of excess Federal Reserve Liquidity.
The entire crypto market has seen a massive pullback with the leading cryptos falling by more than a 10% drop in the last 24 hours. Cardano is down by 31% and BNB by 19% in the last 24 hours. Dash is also down by 97% from its all-time high, and currently trading at $48. Solana is also trading at $44, an 83% fall from its all-time high. This is its biggest one-day move this year and the lowest it has ever recorded since August last year.
Analysts observe that Solana’s failed attempt to break the $93 resistance point has seen it taking a downward trend. Its 14-day Relative Strength Index (RSI) is around 24.87, the weakest it has ever recorded in close to five months. Avalanche, which has seen its price fall by over 90% from its all-time high has also seen its 14-day RSI moving below 23, the weakest it has ever recorded since its inception.
Bitcoin, Polygon, and Litecoin are all 11% 37%, and 25% down respectively in the last 24 hours.
NB: The prices and percentages quoted in the article are valid as of press time.
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Excellent John K. Kumi is a cryptocurrency and fintech enthusiast, operations manager of a fintech platform, writer, researcher, and a huge fan of creative writing. With an Economics background, he finds much interest in the invisible factors that causes price change in anything measured with valuation. He has been in the crypto/blockchain space in the last five (5) years. He mostly watches football highlights and movies in his free time.
Source: https://www.coinspeaker.com/dogecoin-falls-crypto-market/