Prices of #Dogecoin (DOGE), which spiked earlier this week when Elon Musk's Twitter altered its homepage logo to honor the amusing cryptocurrency, have now been falling.
The #DOGE price has decreased by more than 9%, thus Dogecoin's party appears to be over. As of the time of publication, DOGE's market value is $11.5 billion and it is now trading at $0.0825.
There are signs that a more substantial modification is needed. The same factor that drove the price to soar a few days ago also accounts for the significant decline. If a bullish assumption is made, the probable zone would be $0.07 to $0.074, nevertheless.
The #Twitter logo was recently changed from the bluebird to DOGE by Elon Musk, the CEO of Tesla and Twitter who openly supports Dogecoin. We all know that #ElonMusk loves Dogecoin. He gave an explanation for his choice, claiming that the alteration to the emblem was simply made to keep the promise made to a Twitter user during a previous conversation.
This led to a lot of speculation and interpretation, which increased the price by more than 20%. However, the rally was unable to overcome the $0.11 ceiling.
In a recent upgrade, the logo was removed and the previous logo was restored. Market participants began to liquidate as a result of the widespread panic this produced, which greatly increased the selling pressure on the market. The price may eventually return to its initial levels due to the falling tendency.
The number of currencies available on the market rises as miners begin to trade their block rewards. The sell pressure exerted by Dogecoin miners, who own approximately 3.3% of the total DOGE supply, may have a significant impact on the price and push it up more than 20%. However, the rally was unable to overcome the $0.11 ceiling.
The dogecoin community has high hopes that Elon Musk would eventually use DOGE, which is the official money of Twitter. However, it might also entail drawing regulatory scrutiny, and nobody knows how Musk will handle this.
The market is uneven, and Dogecoin's high open interest and skewed financing rate suggest as much. If prices continue to move against enthusiastic traders, a catastrophic reversal may occur.
Brokers may pull traders out of these positions if the market swings against them, a process known as liquidation. Traders frequently take these bets using margin or borrowed cash. Automatic sell orders may also emerge from the forcible closing of holdings, adding to the negative pressure already present in the market.
The price of DOGE surged by more than 30% in a single day, which resulted in a significant spike in social volumes. Popular #cryptocurrency researcher Ali Martinez had earlier issued a two-day-old warning about a possible pullback.
Holding DOGE is not necessary given the present trend; bitcoin is still trading in a horizontal range, thus little money is flowing into alternative cryptocurrencies. However, if you have DOGE, it's also really intriguing to observe the community's elation at some time.
This news is republished from https://coinaquarium.io/
