The crypto market continues to face turbulence, with Dogecoin (DOGE) struggling to maintain its price momentum. DOGE’s value has fallen by 22% since mid-April and is now trading around the $0.072 level – 90% lower than May 2021’s all-time highs.
DOGE Drops to $0.072 – Further Downside on the Cards?
It’s been a tough few weeks for DOGE bulls, with the token’s downward momentum showing no signs of slowing.
Things were looking positive in early April when Elon Musk changed Twitter’s logo to Dogecoin, sparking colossal interest from retail investors.
However, the highs of $0.1048 seem a world away, with DOGE now trading 30% below that level. Not only that, but the token’s intraday volatility remains intense, making it hard for scalpers and day traders to get a bead on where the price will head next.
Per CoinMarketCap, over $214 million worth of DOGE was traded in the last 24 hours, making it the 18th-largest crypto in terms of trading volume.
Unfortunately, much of this trading volume is being driven by bears, with price seemingly heading towards the support level at $0.07. The last time Dogecoin traded below this level was in early March – and even then, the price instantly rebounded back above it.
These signs make for grim viewing for investors, who were hoping that the ongoing “meme coin craze” driven by Pepe Coin and Turbo would spread over to DOGE.
This hasn’t been the case – and with DOGE now trading well below the 50-day and 20-day EMAs, the technicals are indicating that further downside is on the cards.
The only consoling factor for DOGE bulls is that price has yet to permanently trade below the previously-mentioned support level at $0.07 since October 2022. This indicates that there’s likely a high volume of buy orders around this area – so optimistic investors will be hoping for a much-needed rebound.
Lack of Use Cases Leads to Bearish Price Performance for Dogecoin
But why is Dogecoin’s value continuing to fall while other meme coins are exploding in value?
This question appears to be playing on the minds of DOGE bulls, who are used to seeing Dogecoin be the “top dog” in the meme coin market.
Per CoinGecko, Dogecoin does remain the largest meme coin globally, with a market cap of over $10.1 billion – but this doesn’t tell the whole story.
Much of Dogecoin’s bullish momentum over the past year has been driven by Elon Musk’s takeover of Twitter. DOGE optimists point to Musk’s love of Dogecoin as something to be excited by since there’s always a chance that he may somehow integrate the token into Twitter.
However, this optimism appears misplaced since Musk has never mentioned DOGE as an option for crypto integration. In fact, Musk still hasn’t implemented crypto payments on Twitter yet, so any movement in this regard could be a while away.
Another factor driving Dogecoin’s downward spiral is that the underlying blockchain is now considered outdated. Dogecoin still relies on a proof-of-work (PoW) blockchain, which is slower, more expensive, and worse for the environment than the “newer” proof-of-stake (PoS) chains.
A recent article from The Guardian highlighted the harmful environmental impact of PoW chains like Dogecoin’s – stating their huge electricity requirements make them the least eco-friendly option for crypto projects.
Finally, Dogecoin still has no inherent use case, which has caused it to fall behind when compared to newer meme coins that integrate NFTs, blockchain games, and other exciting features.
Ultimately, combining all these factors paints a bleak picture for DOGE – meaning something has to give for the token to bounce back from the recent downturn.
New Meme Coin $SPONGE Makes a Splash on the Crypto Scene
Although Dogecoin is continuing to struggle, this doesn’t mean that all meme coins are on a downtrend.
On the contrary, many coins are experiencing a massive uptick in price momentum – with $SPONGE leading the way in this regard.
This new entrant to the meme coin scene has generated substantial buzz from the investment community, defying the overall market dip to produce returns of over 2,000% for early investors.
The exciting thing is that these returns were achieved with little-to-no marketing push since $SPONGE was quietly listed on Uniswap with zero fanfare.
Since $SPONGE’s price explosion, many leading crypto exchanges have opted to list the token, including LBank, BTCEX, CoinW, and Poloniex.
The listings aren’t stopping there, as MEXC has also revealed that it will begin offering $SPONGE trading on May 11th. MEXC is the world’s 18th largest crypto exchange, per CoinMarketCap, and handles over $560 million in daily trading volume.
These listings have got the crypto community buzzed, with more than 38,000 people opting to follow the official $SPONGE Twitter account in less than a week.
Data from Etherscan.io also reveals that there are now nearly 11,000 $SPONGE holders – and this upward trend shows no signs of slowing.
Even Matt Wallace, an associate of Elon Musk and a huge proponent of Dogecoin, got involved in the act and invested in $SPONGE.
All in all, while Dogecoin continues to face ongoing challenges and price struggles, $SPONGE is providing a beacon of hope to meme coin investors – and continues to “absorb the damp” in the crypto market.
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