- DOGS Price Drop
- Decline in Cryptocurrency Interest
- Comparison with Other Tokens
The popular DOGS meme coin is experiencing a sharp downturn as market participants lose interest. We examine the reasons behind the 38% price drop over the past week and the consequences of this development.
DOGS Price Drop
DOGS price has dropped by over 38% from its highest level last week and is trading at $0.0011, its lowest level since August 26. The decline coincided with a sharp drop in its volume on centralized and decentralized exchanges. Data from CoinGecko shows that its 24-hour volume on Monday stood at $490 million, down from last week’s high of $1.8 million. It was the lowest intraday volume since it started trading. The data also indicates that the token’s futures open interest has started falling, indicating that demand among investors is fading, from last week's high of $149 million to $118 million.
Decline in Cryptocurrency Interest
The first reason for DOGS price decline is the fading news of Pavel Durov’s arrest in France. Durov, the founder and owner of Telegram, was arrested and is facing up to ten years in prison for activities conducted on the app. Many crypto enthusiasts, including Elon Musk and Kim Dotcom, have criticized the allegations. DOGS’ popularity and initial jump last week occurred as traders followed his arrest and arraignment.
The second reason is the overall waning sentiment in the crypto industry, as Bitcoin remains in a tight range between $57,000 and $60,000. Altcoins often struggle to find direction when Bitcoin is rangebound. The third reason is DOGS’ price action mirroring that of newly launched tokens. Typically, tokens rise in the first few days and then drop after a few days as some initial buyers start exiting their investments.
Comparison with Other Tokens
Other Telegram tokens experienced similar price actions. Notcoin initially jumped to a high of $0.02930 in the first few days and then crashed by over 71% to $0.0083. Similarly, Pixelverse rose to $0.10 after its airdrop and has now dropped by over 93% from its all-time high. Therefore, there is a risk that DOGS will continue falling in the near term as many investors who bought during the airdrop continue selling. If this happens, it may drop below the psychological point of $0.0010.
The decline in DOGS price reflects broader trends in the cryptocurrency market and temporary trends characteristic of newly launched tokens. Further decline is possible in the near future, and this should be considered when analyzing the market.
