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Why Is DOGE’s Value Dropping? – Crypto News

Published

1 year ago

February 12, 2024

Dripp

The throne of Dogecoin (DOGE), the King of meme coins, seems to have shaken up. The DOGE price has been slumping unprecedentedly in recent months. Spotlighting the reasons for Dogecoin price dip, a crypto analyst underscored that the hype around this meme crypto might be dying.

Why Is Dogecoin Price Dropping?

Crypto analyst Ali Martinez has noted a concerning trend for Dogecoin as transaction volume and whale transaction count decrease. These metrics, indicative of lower trading activity, suggest a potential decline in interest or confidence in the meme crypto. With fewer individuals engaging in buying, selling, or transferring DOGE, its market dynamics appear to be shifting.

Dogecoin transaction volume and whale transaction count decline, Source: Ali Charts | X

The above-mentioned observation aligns with the current slump in Dogecoin’s price, reflecting investor sentiment and caution in the crypto market. The DOGE price has dropped below $0.080 despite the recent rebound over the $0.082 level.

According to Into The Block statistics, the Dogecoin whale transactions volume in the last 24 hours is $630.13 million. It represents more than a 50% decline from the volume of $1.38 billion recorded on January 10, 2024. Moreover, the daily trading volume for Dogecoin dropped massively to $286.87 million from $778 million a month ago.

Also Read: DeeStream (DST): Could This Leap Forward for Streamers Leave Dogecoin (DOGE) and Uniswap (UNI) Holders Behind?

DOGE Price Slumps Below $0.08

As of writing, the Dogecoin price was down by 3.26% to $0.0799 on Monday, February 12, 2024. Whilst, the meme coins boasted a market cap of $11.42 billion, down by 3.50%. In contrast, though the daily trade volume for DOGE is following a downtrend, it saw a 7.38% increase to $286 million in the last 24 hours.

Amid the price drop, the Dogecoin open interest also slumped significantly as derivatives traders pulled their money out. According to Coinglass data, the DOGE open interest dropped 3.77% to $474.31 million at press time. In addition, massive liquidations were noted for DOGE today.

In the past 24 hours, $1.09 million of Dogecoin liquidations were registered. Almost the entire liquidation concerned the long positions while only $195 worth of short positions were exited. This suggests that long-term DOGE holders are on a selling spree to minimize their losses as the price slumps, thereby catalyzing a further drop in value.

Also Read: Meme Coin Price Prediction: Future of Meme Coins Analyzed