DOGE is down but not out as it still has plenty to celebrate following crypto debacle
- Dogecoin (DOGE-USD) has just fallen below the psychologically significant 10-cent mark.
- Hold your breath because Elon Musk will accelerate a price increase.
- DOGE is also resolving long-standing issues, so stay the course.
Dogecoin (DOGE-USD) and the larger cryptocurrency market have had some bad news recently. Bitcoin (BTC-USD) and Ethereum (ETH-USD), two market leaders, have been beaten. Dogecoin has dropped in lockstep with Bitcoin. However, investors should hang on for dear life since the situation isn’t as awful as it seems.
Bitcoin has lost more than 36% of its value this year, with a dramatic decline in the last two weeks that saw it fall below $27,000. Ethereum has performed much worse this year, losing 47 percent of its value.
And when those leaders go away, so does the Bitcoin industry as a whole. Dogecoin has now fallen below the 10-cent mark, a price it hasn’t seen since it first appeared on the market more than a year ago.
Dogecoin isn’t dead, according to Serious Lows. That’s fantastic news. The bad news is that it has dropped below $0.10 for the first time in almost a year.
Although Dogecoin has been in difficulties recently, it fell drastically on May 11th and 12th due to severe issues. Terra (LUNA-USD) had plummeted to the point that it was nearly worthless. It’s tied to the TerraUSD (UST-USD) stablecoin, which is expected to be dollar-pegged. Terra, on the other hand, has traded much below $1, triggering a major selloff that has rendered it almost worthless.
The announcement has sparked widespread discussion and even outright dread of a House of Cards-style situation. DOGE is now selling for less than $0.10.
The good news is that Dogecoin isn’t a stablecoin. It’s not designed to act in the same way as the dollar. The failure of LUNA and USD proves that creating a digital product that mimics the USD is difficult, if not impossible. However, this in no way implies that DOGE is in danger of dying.
Although this is a blow to bitcoin in general, Dogecoin will endure.
Elon Musk, a big supporter of Dogecoin, is a tremendous catalyst. The notion that Elon Musk’s upcoming acquisition of Twitter (NYSE:TWTR) would boost Dogecoin is well-known.
That implies HODLers should just wait for the story to develop. Is it beneficial to cryptocurrency? No, most likely not. However, it will function as a kind of cryptocurrency test. Those who possess coins will surely have to cling on. However, all DOGE investors are well aware that Elon Musk will go to great lengths to promote Dogecoin.
No other cryptocurrencies are accepted by Tesla (NASDAQ:TSLA). In a recent essay, my colleague Mark Hake brought this up. He also said that Twitter would accept Dogecoin as a means of payment for its upcoming subscription services, dubbed Twitter Blue, under his leadership.
While the current news is clearly unfavorable, Dogecoin is poised to become a major positive factor. Dogecoin will continue to be championed by Elon Musk.
Increasing Utility
DOGE is also becoming more useful. Investors have long chastised it for its limited application and usefulness. However, I recently reported about Gucci’s (OTCMKTS:PPRUY) decision to accept Dogecoin as payment in the future.
This expands DOGE’s functionality and applications. Holders should not sell despite the unfavorable news influencing the cryptocurrency market and driving DOGE to new lows.
What Should You Do?
Dogecoin is certainly being put to the test right now. Despite these problems, there is plenty to be optimistic about. Furthermore, many investors who have been taken off guard by this drop are now without options. Holding on and being optimistic about the meme coin’s future is the best course of action.