Doge Value Drops After Brief Rally

After a spike in price that saw it gain over 20% in value, the popular meme coin, Doge, has pulled back on its gains, dropping back to $0.18, according to CoinMarketCap.

Doge Rallies by 20% After Musk Tweet

Since it reached an all-time high of $0.74 back in May, the cryptocurrency has fluctuated between $0.16 to $0.26 as it struggled to regain its previous value. This was due to several reasons, including the emergence of other meme coins such as Shiba Inu, which has reduced its trading volume.

But it gained over 20% in value on Tuesday after Elon Musk announced that Tesla would accept Dogecoin as payment for some of its merchandise. He mentioned this in a tweet that immediately became viral. 

Musk, the richest man in the world, has been one of the most influential forces behind the rise of Dogecoin from merely a meme coin to one of the top cryptocurrencies by market cap.

Doge Value Drops 24 Hours After

His tweets and vocal support for the digital asset played a crucial role in its climb to an all-time high. This, coupled with the interest from retail investors, helped push Dogecoin past all the wildest dream prices of its early holders. But it appears that it’ll take the words of a billionaire for the coin to keep its value.

Despite gaining over 20% to finish the $0.2175 yesterday, the coin has trimmed off most of its gains in less than 24 hours. It appears that Dogecoin is unable to move past its price rejection which is around $0.21, as the market remains reluctant to move above that price.

This brief spike was the first time in almost a month that the crypto asset has seen a positive change in its value, but that price recovery now looks short-lived. With a drop to $0.17, the coin continues to fluctuate with no clarity on which direction it will be heading.