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

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

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

Why is Dogecoin Going Down?

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

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

So, in order for the prices to keep rising, people would have to keep pumping more and more money into Doge, which is unsustainable in the long run. Once the coin reaches high prices, many people sell the coin taking enormous profits. As the price falls, people start selling out of fear, as they don't want to lose money on their investments. This creates a chain reaction of sellers, which brings down the price of the Doge significantly in a short amount of time. If readers were to notice the price charts of any major coins, they 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 the only reason behind Dogecoin falling. Other 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 other 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 advice. Cryptomarkets are highly volatile and people should do their own research before investing in cryptocurrencies. 

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