With a bearish market, the canine-themed meme coin Dogecoin suffered a major decline in trading volume. Investor interest also dramatically waned starting December 2021.
Further, there was a huge 66% slump in trading volume from January to March of 2021. Things got even worse in February when Russia invaded Ukraine.
Suggested Reading | Dogecoin (DOGE) Jumps 30% After Elon Musk Buys Twitter
DOGE Slumps from 2021
In January this year, Dogecoin’s trading volume was at $33.51 billion. Comparatively, the trading volume in February 2022 dropped further to $22.44 billion.
The trading price of Dogecoin started at $0.1705 on January 1 and this closed Q1 at $0.1378. That is a nearly 20% drop between DOGE’s opening and closing price in the first quarter. Today, the DOGE price has dropped by 3.1% with a trading volume of $0.13569.
DOGE is now ranked 11th among the top 20 cryptocurrencies, with a market cap of $18 billion. (Image credit: The Scotsman)
When the Bitcoin price declines (BTC is down at 4.4% today), its peers or other altcoins also suffer a major drop. Call it a domino effect of sorts. Bitcoin along with other crypto tokens are down for quite some time as investors are feeling the agitation with the tightening plans by the U.S. Federal Reserve.
Dogecoin – The Strongest Meme Coin
Dogecoin was one of the strongest cryptocurrencies last year recording an all-time high and shooting up at $0.7376 in May 2021. DOGE is on the top 20 cryptocurrencies to date or at the 11th spot with a market cap ticking at $18 billion.
With the support of Tesla CEO Elon Musk and billionaire entrepreneur Mark Cuban, Dogecoin is definitely not running out of gas in terms of popularity, market cap, and supply. However, DOGE’s unlimited supply also happens to be its Achilles’ heel because of inflation issues.
DOGE total market cap at $20.10 billion on the weekend chart | Source: TradingView.com
The bearish pressure has pressed on the DOGE price putting it way below the critical level or at $0.12. This price behavior happens when it moves fast as it runs on empty. This could trigger a flash crash that could go below the $0.09 level.
DOGE’s Bullish Reversal
However, this disequilibrium or great disruption can mean one thing. DOGE could be up to a higher reversion. And Musk becoming the new owner of Twitter could turn things around for the most popular meme-inspired coin.
Not everyone feels bullish, especially with a meme coin but if it’s a DOGE then you are betting on one of the most robust digital tokens around. With a bullish reversal, people should definitely get ready for DOGE to soar.
Suggested Reading | Bitcoin (BTC) Dips Below $40,000 Over Ukraine And Possibility Of Fed Rate Hike
Featured image from Coingape, chart from TradingView.com
