Why is DOGE Down Today?

The price of the meme-inspired cryptocurrency Dogecoin is down nearly 7% over the last 24-hour period to now stand at $0.31 per DOGE, down from around $0.40 a week ago amid a wider cryptocurrency market downturn.

According to CryptoCompare data, DOGE has lost around 24% of its value over the past week and is underperforming most other top digital currencies, which started plunging after the Federal Reserve’s Chair Jerome Powell suggested there will be fewer interest rate cuts next year.

DOGE Chart via CCData

The Fed Chair’s comments led to a massive cryptocurrency market drop that saw its total market capitalization plunge by around $600 billion before a recovery started. The comments dampened investor sentiment and affected traditional finance markets as well.

The stock market’s benchmark index, the S&P 500, lost around 3.2% of its value before recovering, while the Nasdaq saw a similar dip. The market sell-off caused the Dow Jones Industrial Average to continue its decline after experiencing nine straight losing sessions, marking its longest series of daily losses since 1974.

Notably, analysts have been calling for a DOGE price surge over the last few weeks, with a popular analyst who gained a large following on social media after accurately calling Bitcoin’s 2018 bear market bottom above $3,000 has recently revealed he believes the price of the meme-inspired token could see a “violent upside move.”

Featured image via Unsplash.

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