Dogecoin (DOGE), the popular meme-based cryptocurrency, suffered a sharp drop in price on Thursday, April 6, after Twitter decided to revert back to its original logo, removing the Doge-inspired one that it had adopted for April Fools’ Day. The move coincided with a massive sell-off by some of the largest DOGE holders, who took advantage of the recent rally to cash out their profits.
According to data from CoinMarketCap, DOGE plunged by 9% in the last 24 hours, trading at $0.053 at the time of writing. The coin reached a new all-time high of $0.074 on Wednesday, April 5, after gaining more than 50% weekly. The surge was partly driven by the endorsement of several celebrities and influencers, such as Elon Musk, Snoop Dogg, and Gene Simmons, who tweeted about DOGE and changed their profile pictures to feature the Shiba Inu dog.
However, the hype was short-lived, as Twitter decided to end its April Fools’ prank and restore its original blue bird logo on Thursday. The social media platform changed its logo to a Doge-themed one on Wednesday as a nod to the growing popularity of cryptocurrency. Many DOGE fans and investors saw this as a bullish sign and expected the coin to reach new heights.
Unfortunately for them, the logo change was only temporary and did not reflect any official support or endorsement from Twitter. As soon as the logo was switched back, DOGE’s price started to plummet, erasing most of the gains it had made in the previous days. Some analysts believe that this was a classic case of “buy the rumor, sell the news”, where traders buy an asset based on speculation and sell it when the actual event happens.
Another factor that contributed to DOGE’s decline was the massive sell-off by some of the largest DOGE holders, also known as whales. According to data from Bitinfocharts, four of the top 10 DOGE addresses sold a combined total of 6.8 billion DOGE on Thursday, worth about $360 million at current prices. These whales had accumulated large amounts of DOGE during the past months and decided to dump them when the price reached a new peak.
The sell-off by the whales caused a significant drop in DOGE’s market capitalization, which fell from $9.5 billion on Wednesday to $6.8 billion on Thursday. This also affected DOGE’s ranking among other cryptocurrencies, slipping from the 14th to the 18th position.
Despite the recent setback, some DOGE enthusiasts remain optimistic about the coin’s future and believe that it still has the potential to grow further. They point out that DOGE’s loyal and active community supports its development and adoption. They also hope that more celebrities and influencers will join the DOGE bandwagon and help boost its popularity and value.
What do you think about DOGE’s price performance? Do you think it will recover from the recent dip or continue to decline? Let us know your thoughts in the comments section below.
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