By
Chimamanda U. Martha
April 25th, 2024
Considering its sensitivity, DOGE is likely to bounce in either direction in tandem with the broader market after the hearing.
Dogecoin (DOGE), the memecoin is leading the losses among the top 10 digital currencies by market cap today, having shed as much as 7.97% of its price over the past 24 hours to be changing hands at $0.08912. At the current price, DOGE now has a market capitalization of $11.82 billion, but it still retains its sit as the 8 largest digital asset, according to data from CoinMarketCap.
The slump in DOGE both on the weekly and daily levels is a result of the encompassing market trend. The combined crypto market cap is down by 1.38% to $844.43 billion, a bearish growth that was stirred by the 1% slump in the price of Bitcoin (BTC) to $16,990.21, and the 1.40% drop in Ethereum (ETH) to $1,254.39.
The drop in these digital currencies today has dampened the general industry with accompanying massive liquidations according to data from Coinglass. Per the data, approximately 45.94 million DOGE worth as much as $4.08 million has been liquidated over the past 24 hours. This figure only trails the liquidation of Ethereum and Bitcoin worth approximately $8.04 million and $6.61 million respectively.
The slashed price of Dogecoin is still not enough to totally erase all of the positive accumulation the cryptocurrency has recorded over the past month. According to data from Coingecko, Dogecoin is still up by 3.2% over the past month, a figure that ironically makes it one of the best-performing coins among the top 10 coins.
Dogecoin’s relevance still takes its deep roots in Elon Musk, the CEO of the social media giant, Twitter Inc. There have been speculations that Dogecoin will be prominently featured in Musk’s plans for Twitter 2.0 which will position the social media platform into an everything app, including payments.
DOGE Price amid Macroeconomic Headwinds
The power DOGE wields on the broader market in relation to its price swings is minimal when compared to Bitcoin, however, key macroeconomic conditions that impact the broader market are poised to affect it too.
One of these is the proposed meeting by the Federal Open Market Committee (FOMC) billed for Tuesday, December 13 where the officials are set to increase the interest rate by 50 basis points. Should this rate be announced, it will show how well the Feds are willing to go to slow down the aggressive hikes that have characterized the financial ecosystem for the better part of the year.
While this rate position has its unique undertones in the market with a visible rub-off on DOGE price, the testimony of the former CEO of the bankrupt FTX exchange, Sam Bankman-Fried could also compound the bearish outlook on the industry.
“I still do not have access to much of my data – professional or personal,” he said last week in a conversation with House Chairwoman Maxine Waters. “So there is a limit to what I will be able to say, and I won’t be as helpful as I’d like. But as the committee still thinks it would be useful, I am willing to testify on the 13th.”
Considering its sensitivity, DOGE is likely to bounce in either direction in tandem with the broader market after the hearing.