Bitcoin And Ethereum Are Rallying Again, But Why Is Dogecoin Down?
The flash crash that occurred last week shoot the crypto market. Top coins Bitcoin and Ethereum were down with the crash. And so was meme coin Dogecoin. Dogecoin, like most other coins, had spent the past month recovery from two-month lows when the crash had hit. Doge recorded losses of up to 18% with the September 5th crash. Sending its price back down towards month lows.
Hours following the crash saw Dogecoin recovering back a good percentage of its value that had been lost. But remained low compared against previous levels before the crash had hit. The crash left most of the top 10 coins struggling to recover some value. Although bears had taken advantage of the situation in the market to push the price lower. The close of the midweek trading market has left Bitcoin and Ethereum in an upward trend. Yet Dogecoin remains in the red. Why is this so?
Dogecoin Losing Clout
If there is one thing that crypto enthusiasts have always used against Dogecoin, it is the last of functionality. It is no surprise that the coin has no known use cases given the reasoning behind its creation. But becoming one of the top 10 crypto coins by market cap has opened up debates about the usefulness of the meme coin. Dogecoin has thrived off of the hype created around it by top supporters like billionaire Elon Musk. But as Musk’s influence on the crypto has waned, so has the value of the altcoin dropped.
Dogecoin had peaked at $0.73 back in May. Then crashed along the rest of the market into what seemed like the start of a bear market that had lasted two months. Recoveries have since been made in the prices of top cryptos in the market. With most nearing their previous all-time highs like in the case of Ethereum. While others completely shattered new all-time highs like Cardano and Solana.
The inability for Dogecoin to regain even half of its previous all-time high has seen investors losing faith in the coin. Hold sentiments have been low throughout the community which saw investors dumping their bags as the price struggled. This has continued on to the current point where the price has seen no significant uptick in its movements.
Doge Price Movements
Dogecoin has remained in the red even after top coins like Bitcoin and Ethereum have moved into the green. The seven-day chart for Doge shows that the digital asset has consistently returned red. Even as midweek market trading picked up to take the market towards green.
The 24-hour chart shows lower highs and lower lows with each dip and recovery. Currently down an average of 1.11% in the last day. Despite the 25% uptick in daily trading volume, Dogecoin has not posted any gains. Its market cap is down another 1.21%. Pushing it down to the 9th spot on the top 10. As Polkadot (DOT) takes over the 8th spot with a 7-day recovery of 17.32%.
The price of Dogecoin is trading at $0.239 at the time of writing. Bringing its total market cap down to $31 billion.