As a seasoned researcher with over two decades of experience in the ever-evolving world of cryptocurrencies, I’ve seen market trends come and go, from the rise and fall of Bitcoin to the meteoric ascent of Dogecoin. The current sell-off of DOGS (DOGS) is an interesting case study that underscores the volatile nature of this space.
The well-known meme cryptocurrency based on Telegram, known as DOGS, has experienced a significant setback due to decreasing enthusiasm from the market.
DOGS token sell-off has continued
The cost of DOGS tokens has plummeted more than 38% from its peak last week, reaching a record low of $0.0011, which is the lowest it’s been since August 26th.
The drop in its trading volume, both centralized and decentralized, occurred around the same time as a decrease. According to CoinGecko data, on Monday its 24-hour trading volume was $490 million, which is significantly lower than last week’s peak of $1.8 billion. This marked the lowest daily trading volume since it began trading.
The data also indicates that the token’s futures open interest has started falling, indicating that demand among investors is fading. Its open interest stood at over $118 million, down from last week’s high of $149 million.
It appears that the value of the DOGS token may have decreased for three primary reasons. Initially, the news about Pavel Durov’s detention in France initially caused concern among his supporters, but now they are waiting for further developments from the French authorities, which might explain its gradual decline.
As a researcher, I’m sharing an update about a significant development concerning Telegram, the messaging platform founded by Pavel Durov. Recently, Durov was apprehended and is currently dealing with potential imprisonment for up to ten years due to activities linked to the application. This situation has sparked strong criticism from cryptocurrency enthusiasts, among them Elon Musk and Kim Dotcom, who are voicing their concerns on the grounds of free speech.
The surge in the popularity of dogs, along with their initial spike last week, can be attributed to the fact that traders were following news about his arrest and court appearance.
Cryptocurrencies are not doing well
2. Similarly, the price of DOGS token has dipped as well, owing to a decrease in overall positive feeling within the cryptocurrency market with Bitcoin (BTC) stuck in a narrow price band. Over the last few days, BTC has been oscillating between $57,000 and $60,000. Generally speaking, altcoins find it challenging to establish a clear trend when Bitcoin is moving within a fixed range.
3rd Point: Similar to new tokens, the behavior of DOGS (Dogecoin) has been reflective. In general, these tokens tend to increase during their early days, only to decline later on as some initial investors decide to sell their holdings after a few days.
As I delve into the world of cryptocurrencies, I’ve noticed striking similarities in the price movements of certain tokens. For instance, when Notcoin (NOT) was first introduced, it soared to a peak of $0.02930, only to plummet by an astounding 71% to $0.0083 within the initial days. This pattern mirrors that of Pixelverse (PIXFI), which saw a surge to $0.10 following its airdrop, but has since fallen more than 93% from its all-time high.
As a result, it’s possible that the token could keep declining in the short term since many investors who obtained it through the airdrop might be offloading their holdings. This could potentially push its value under the significant threshold of $0.0010.
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2024-09-02 18:36