The cryptocurrency market has been going through a very volatile period lately, with the direction in favor of the bear.
The overall cryptocurrency market took a bearish turn with Bitcoin losing 8%, with most of the major altcoins in the red zone on their daily and weekly charts. Dogecoin, on the other hand, experienced a surprise pump. Analyst Varun Trivedi evaluated DOGE.
On December 14, Elon Musk tweeted, “Tesla will launch several products that can be purchased with Dogecoin and will monitor how the process progresses.” He used his words. This statement of the famous billionaire came after his followers demanded that Tesla receive payments with DOGE for months.
After that, with its social volume skyrocketing, DOGE price rallied 35% in 24 hours. The price increases experienced by DOGE generally progress in parallel with the peak points in social volume.
Dogecoin price did not recover after falling below $0.195 in early December and is still trading at $0.1807. At the time of this writing, DOGE is trading 75% lower than its all-time high of $0.74.
Although the increase in the number of new and active addresses in the short term is impressive, address growth has slowed down considerably. The number of addresses with balances in the last 30 days was 4.3 million on 14 December. The growth rate in the second half of the year seems to be slower compared to the first half.
Although the interest of individual investors and the rise in social volume have made Dogecoin successful, it is striking that the recent pumps have developed quite weakly. In addition, Floki Pup claiming to be the Dogecoin killer by 45.39%, Floki Inu by 10% and Dogecoin 2.0 by 28.04% may mean that the market is heading towards higher-risk assets, according to the analyst.