Dogecoin (DOGE) has experienced a massive drop in the last 24 hours and has been one of the most affected tokens Widespread decline in the crypto market. Due to this, the most prominent meme coin has fallen to levels not seen since February earlier this year.
Reasons for the fall in Dogecoin price
Dogecoin This has led to a significant drop in prices Strong Positive Price Correlation With bitcoin. Data from market intelligence platform intotheblock shows that Digicoin’s price correlation with Bitcoin is currently at 0.95, which is almost the pinnacle of a strong positive price correlation that any asset can have with the leading crypto.
As such, Dogecoin has followed a similar path to Bitcoin, with the flagship crypto falling by more than 11% in the last 24 hours and reaching price levels not seen since the beginning of the year. The decline in the price of Bitcoin and Dogecoin can be attributed to the current macroeconomic situation in the US and globally.
July jobs report suggested that the US economy could be in worse shape than many had imagined, with unemployment rising to 4.3%, higher than expectations. This has raised concerns among crypto traders that they could be putting such assets at risk Dogecoin If conditions worsen, they are likely to be most affected.
federal Reserve This has also not helped the matter as it puts a stop to interest rate cuts. This has dampened the bullish sentiment among crypto investors as there were speculations that these interest rate cuts would happen even sooner than now. Higher interest rates are a bearish signal for the crypto market as investors have less to spend on these riskier assets, including Dogecoin.
Meanwhile, police action continued. Bank of Japan This is also believed to have caused a domino effect, which is also hurting Bitcoin and Dogecoin prices. Last week, Japan’s central bank raised its benchmark interest rate, which immediately led to a massive drop in the Nikkei (Japan’s stock exchange). It seems that this development has spread to the US stock market and the crypto market, given how both markets have reacted.
Opportunity to buy on dips?
Crypto analyst Crypto Kaleo Is suggested that Dogecoin’s recent price drop is the perfect ‘buy the dip’ opportunity, especially with their forecast that the most prominent meme coin will still rise to $1 later this bull raceBased on this, he said that the drop in Dogecoin’s price is a “gift”, although many may consider it painful.
Dogecoin Investors One can get the opportunity to stake the meme coin at a greater discount with Crypto Kaleo Prediction DOGE could still fall to $0.07. He said that there would be no further trouble after falling to $0.07 and investors would just have to wait a few months until Dogecoin finally reaches $1.
At the time of writing, Dogecoin is trading at around $0.08, down more than 21% in the last 24 hours, according to data From CoinMarketCap.
Featured image created by Dall.E, chart taken from Tradingview.com
