Why is Dogecoin going down? Dogecoin dips in price after reaching an all-time high

past week has been a big week for cryptocurrency market. Many popular cryptocurrencies such as Ereum, Ereum Classic and Dogecoin reached ir all-time high prices. This has partly been due to fact that cryptocurrencies are slowly being accepted all around world and even major corporations and bands have started accepting crypto payments.

Some large corporate organisations have chosen to invest in crypto mselves. Over past month or so, price of Dogecoin has gone up from $0.5 at beginning of April to about $0.72, which is about a 1400 per cent rise in price. However, price of Doge dropped significantly yesterday after reaching peak price. In this article, we will take a look at why is Dogecoin going down. 

Why is Dogecoin Going Down?

Before understanding why Dogecoin price fluctuates so much, reers need to understand fundamentals of this crypto coin. Dogecoin crypto was first formed back in 2013 as a joke. creators of Dogecoin build Doge to be a friendly introduction for general public to world of cryptocurrencies. Doge became popular over years because of its status as a meme, and it h popular 'Shiba' doge as face of currency. Just a couple of years ago, price of Dogecoin was a few pennies.

Over past year or so, coin became more popular all over world. People started to buy coin all around world due to its very cheap price, compared to or currencies. Celebrities like Jordan Belford and Elon Musk often promoted coin and brands such as Slim Jim also me it a part of ir marketing campaign. However, Dogecoin has a very huge supply, and around 10 million Dogecoin are ded to supply each day.

So, in order for prices to keep rising, people would have to keep pumping more and more money into Doge, which is unsustainable in long run. Once coin reaches high prices, many people sell coin taking enormous profits. As price falls, people start selling out of fear, as y don't want to lose money on ir investments. This creates a chain reaction of sellers, which brings down price of Doge significantly in a short amount of time. If reers were to notice price charts of any major coins, y would notice this trend. Every time a coin a new peak price, it is followed by a fall in price. 

However, crypto markets are fairly complicated and this may not be only reason behind Dogecoin falling. Or factors involved could be large amounts of doge being sold off by institutional investors and whales. People interested in investing in cryptocurrencies in India can buy Dogecoin and or cryptos on exchange platforms such as WazirX, Zebpay etc. Stay tuned for more updates on Dogecoin and cryptocurrencies. 

Disclaimer: Please note, this is not financial vice. Cryptomarkets are highly volatile and people should do ir own research before investing in cryptocurrencies. 

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