Dogecoin: A cryptocurrency that was created as a joke is becoming increasingly popular. Despite the initial idea, it has now become one of the most talked about cryptocurrencies on the market. Dogeday, which took place on April 20, 2021, was supposed to be the day when Dogecoin would reach the price of $1. However, instead, it turned into a news event.
Dogecoin rate drops after Dogeday
After Dogeday, the course Dogecoin began to fall rapidly. The cryptocurrency lost more than 30% of its value, falling to the level before the event. The losses were caused by the sale of the cryptocurrency by many investors who hoped to make a profit during the Dogecoin price rise on Dogeday.
After a wave of liquidations, the volume of UX on futures contracts fell to $460 million. However, open trading volumes rose again to $533 million, which was due to the excitement around the rocket launch.
Although the drop in the DOGE price caused a massive liquidation of about $104 million, OI volumes are above the highs of January 2023, indicating that the coin may experience more volatility.
Why is the Dogecoin rate unstable and how does it affect investors?
Dogecoin’s exchange rate is very volatile, which can cause anxiety among investors. Despite this, many people still consider it a profitable investment due to its rapidly rising value. However, such sharp fluctuations can be a problem for those who plan to invest significant funds.
The future of Dogecoin: what to expect after the rate drop?
Despite the drop in the Dogecoin rate after Dogeday, there are some signs that the cryptocurrency may return to a rise in value. For example, Tesla has announced plans to accept Dogecoin as a means of payment for its goods and services.
Also, the participation of more famous investors, such as Mark Cuban, in the cryptocurrency market may increase the popularity of Dogecoin and affect its value.
In general, the Dogecoin rate can depend on many factors, including technical indicators, news and events in the crypto world, as well as the reaction of the public and investors. However, it should be remembered that cryptocurrencies are a very risky investment and require a deep understanding of the market and its features.
The Dogeday news sale was an unexpected event that affected the Dogecoin rate and caused it to plummet. Despite this, the cryptocurrency remains one of the most popular on the market, and its future may depend on many factors. Investors need to be careful and cautious when considering cryptocurrency investments and always make an informed choice.