Dogecoin may have been making rounds in the cryptocurrency market, for many reasons, but a commendable price performance isn’t one of them. The meme-coin is, at the time of this writing down by 2.80%, and has dropped by 7% within the last 7 days.
Elon Musk bullish on DOGE despite its underperformance
As demand for a lot of other Altcoins continues to rise, DOGE doesn’t seem to be doing so well. Trading volume has dropped massively and has significantly shaved off a lot of numbers in comparison to the start of the year. There are many reasons to be bearish on Dogecoin, but Elon Musk, the “Doge father” himself has in his usual fashion remain bullish on the asset.
Taking to Twitter, he posted another meme citing an incoming bullish rally. Although he didn’t specifically mention Doge, the market has every reason to believe he is referring to none other than the meme coin.
Analyst William Clemente who has shown himself to be a Bitcoin maximalist has hit the like button on Musk’s tweet, hinting that he might be in support of Musk’s prediction for Doge.
Dogecoin still has a lot to prove
Before now, the market was confident that the Doge dominance is here to stay, following Elon musk’s consistent support for the asset. However, there’s only so much the billionaire can do. Per our recent report, Elon musk has lost a lot of his credibility in the cryptocurrency market following his bearish takes on Bitcoin, and it seems that the same is becoming the case for Dogecoin.
Usually, Musk name-dropping Doge would cause a buying frenzy, sending the asset’s price to the moon. However, on the last few occasions where this has happened, the price gains have been lost almost as quickly as they were attained.
The future is as uncertain as it is promising for the meme coin
This builds the long-standing argument that Doge may not make it in the long term, as there is simply not enough buying pressure to sustain the price levels.
Meanwhile, new data from Messari maintains that Dogecoin’s social media presence has impacted the growth of the asset. The meme coin rally which saw the likes of Shiba Inu and Safemoon surge significantly has been credited to DOGE.
$DOGE (+325%) led the meme coin rally.
The community’s strong social media presence led to the price multiplying 12x before dropping off by the end of the quarter.
Following behind DOGE were $ETC (+268%) and $XRP (+12%). pic.twitter.com/Lg3ZY1VNY1
— Messari (@MessariCrypto) July 6, 2021
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