Dogecoin may be losing steam, as the meme coin’s price has taken another 3% hit today, leading to the asset’s market cap dipping below Cardano’s market cap.
Dogecoin Cools Down After Showing Strong Bullish Momentum
Until just a couple of days back, Dogecoin seemed to have finally been putting together some promising bullish momentum, as the asset had managed to breach the $0.083 level. In these past two days, though, the coin has once again slipped up, as its price has registered a notable drawdown.
Following the latest 3% decline in the meme coin during the past day, its value is trading around $0.0767. The below chart shows how DOGE’s price has changed recently.
Looks like the value of the coin is still overall up in the last few days | Source: DOGEUSD on TradingView
Even with the drop in the last couple of days, however, Dogecoin hasn’t yet entirely erased the recovery it has made recently, as the coin remains at gains of more than 6% during the past week.
With these profits, DOGE is still the best-performing among the top assets in the sector, since most of the market is in the red at the moment. With the meme coin appearing to lose steam, though, it’s uncertain how long this will remain true.
Recently, Dogecoin climbed up the market cap ranking and attained the 7th spot, meaning that the coin had become the 7th-largest in the sector.
But with this decline, the asset’s total valuation has naturally taken a hit, leading to Cardano retaking the spot from the meme coin.
DOGE's market cap is $10.7 billion currently | Source: CoinMarketCap
The gap between the two cryptocurrencies isn’t that significant right now, implying that DOGE could surpass ADA again. That is only, of course, if the coin can retrace some of its decline.
Dogecoin Whales Made Moves Just As The Decline Started
Interestingly, just around when the decline in the coin first started, two whales made some large moves, according to data from the cryptocurrency transaction tracker service Whale Alert.
🚨 85,000,000 #DOGE (6,943,166 USD) transferred from #Robinhood to unknown wallethttps://t.co/xniYY7MPNJ
— Whale Alert (@whale_alert) July 25, 2023
🚨 250,000,000 #DOGE (20,314,243 USD) transferred from unknown wallet to unknown wallethttps://t.co/oBmPRN7sWN
— Whale Alert (@whale_alert) July 26, 2023
In the first of these, a whale withdrew their coins from Robinhood to a self-custodial wallet. Generally, these investors go away from centralized platforms when they want to accumulate, but given that the asset started declining around the time of this transfer, it’s possible that the investor intended to sell through P2P deals instead.
The blockchain data may also confirm the same, as the explorer platform Blockchair shows that this unknown wallet emptied itself out not too long after the withdrawal.
The second Dogecoin whale made a transfer between two unknown wallets, which can again be a sign that dumping through P2P deals may have been taking place.
As for why the market may have shifted away from buying toward selling in these past couple of days, something that has been at the center of DOGE-related talks in the market recently may hold the answer.
When Elon Musk rebranded Twitter, he also dropped some hints about something related to Dogecoin that may be implemented on the platform. So far, however, nothing has come out of it, which may have perhaps made some investors reconsider their investment in the meme coin.