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Dogecoin’s army retreated; 29% price reduction

The Dogecoin fell 28 percent yesterday to 29 cents. Dogecoin fans were supposed to raise the price of this digital currency yesterday; But as it turns out, things did not go their way.

to the the report Dogecoin, the Dogecoin price had more than increased 60 times this year, with a market value of over $ 40 billion. Everything seemed to be ready for the Dogecoin price of $ 1, and even Dogecoin Day posters were trending in cyberspace.

On the evening of April 20, something happened that surprised everyone in the Dogecoin community. The price of this digital currency, which is accompanied by the symbol of Shiba Ino dog, fell by 28% to 29 cents on this day.

Edward Moya, senior analyst at Oanda Brokerage, said:

Many people considered April 20 to be a successful day for Dogecoin. Some of them predicted a price of 50 cents for this digital currency; Others hoped for $ 1. Of course, the Dogecoin price drop (today) does not mean the end of the currency; But it will certainly sell a large amount of it.

It should be noted that despite the price reduction that occurred, many analysts are still optimistic about the future of Dogecoin. For example, Mike McGlone of Bloomberg Intelligence believes that more success is expected in Dogecoin and greater profits are on the way. In his opinion:

Despite the global popularity of Dogecoin, it is highly unlikely that anything will stop the development of this digital currency, at least in the near future. Dogecoin is an interesting and entertaining currency and will likely remain so in the future.

Dogecoin's army retreated;  29% price reduction
7-day moving average chart of Dogecoin price plus its active addresses

Mike McGellon is an analyst known for his good forecasts for the price of bitcoin. His latest forecast was published in the April 20 report. Predictions like this have given some hope to Dogecoin users (who were looking for a way out of the current situation).

Another question is whether the profit that Dogecoin made this year can inject good capital into the project and improve its performance. For example, during the rise in GameStop stocks last year, the company was able to raise about $ 1 billion in capital, adopting new strategies for management and e-commerce issues. The question now is whether something similar will happen to Dogecoin. It should be noted that the market value of the Dogecoin is now even greater than that of the English bank Barclays, which is more than a century old.

Data from Quinn Metrics data analysis company shows that the volume of activities in the Dogecoin network is increasing; The number of Dogecoin active addresses has increased and its transaction volume has been unprecedented over the past 7 years. Earlier, it was previously reported that data from the GitHub site indicates an overall increase in Blockchain developments, with the Bitcoin network having the largest share. In the image below, you can see the activity chart in the two blocks of China Bitcoin and Dodge Coin from 20177 to 2021.

Dogecoin's army retreated;  29% price reduction
Chart of activity in two blocks of China Bitcoin and Dodge Coin from 2017 to 2021

Finally, the Dogecoin fever has even spread to the Defy industry, and many tokens have been created in this space with letters similar to the Dogecoin.

One of these tokens, called the Shib, dubbed the “Dogecoin Killer,” is now available at the decentralized exchange office of UniSwap. It is interesting to know that the price of this Ethereum ERC-20 token has also increased by more than 5,000 percent in the last 4 months, and on Sunday, at the same time as the Dogecoin price record was recorded, the price of this token has also increased by 95 percent. Data from the Unicap website show that the token traded more than $ 200 million in the last 24 hours.

Another token that can be mentioned in this regard is a token called Weed Doge. The token was developed this week to help people jailed for marijuana-related offenses. A page called CryptoMoonShots on the Reddit social network says about this token:

Dogecoin helped us a lot and gave us a lot of profit during his ascent. We also wanted to create a purposeful and meaningful Quinn that could help other people in different ways.

Many people see such events as a sign of a bubble in the world of digital currencies. The price of digital currencies such as bitcoin has doubled this year, due in part to people trying to escape the inflation caused by the printing of trillions of dollars by the Federal Reserve and other US central banks.

Finally, before what happened to Dodge Coin on Tuesday, Mike McGlone had praised Dodge Coin for his ability to raise prices, even in the days when Bitcoin was in correction; But as it turns out, things do not always go our way.


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