After a spike that triggered a surge that brought out the power of crowd euphoria and meme magic, the price of Dogecoin has dropped nearly 48%. In a pullback from Friday’s highs of $ 0.06, reaching just $ 0.021. This is registered by our internal crypto online tool.
Recall that the digital currency, originated as a joke between friends about the popular “doge” meme, shot up to 800% in one of its markets after the “hurricane” Reddit fixed its eyes on it and the comments to become the equivalent of GameStop in the crypto world rose like foam.
During the early hours of Friday, January 29, the cryptocurrency reached a historic price of 0.078 US cents per unit. In addition, its market capitalization exceeded 10 billion dollars for the first time, something unthinkable a few years ago.
Within hours on Thursday, the pair added more than 80% of its spot price before correcting. At its inception in 2013, Dogecoin was worth $ 0.000232.
Following the price escalation in the market, Reddit users are encouraging investors not to sell and to continue “pushing.”
Robinhood Suspends Instant Deposits For Crypto Purchases Due To Rise In DOGE Price
Stock and cryptocurrency trading platform Robinhood temporarily disabled instant deposits for cryptocurrency purchases as of January 29. Citing “extraordinary market conditions.”
Users can still buy cryptocurrencies using settled funds that have been previously deposited. Although such deposits can take up to five business days to clear.
A Robinhood spokesperson told CNBC that the company would “continue to monitor market conditions and communicate with our customers.”
Robinhood has faced recent criticism for suspending trading in a number of traditional stocks. Including GameStop, which had the support of retail investors to the detriment of Wall Street hedge funds.
The Dogecoin price was driven by posts and tweets from WallStreetBets traders on Twitter and Reddit.
Dogecoin withdrawals complicate amid rapid price surge
Large cryptocurrency exchanges are experiencing increasing problems with Dogecoin (DOGE) withdrawals.
On January 28, several cryptocurrency users reported on Twitter that they were unable to withdraw their Dogecoin due to exchanges temporarily disabling withdrawals.
The affected exchanges reportedly included some of the major crypto platforms such as Poloniex.
Some cryptocurrency users reported that they logged into Dogecoin-compatible exchanges like Poloniex to buy some DOGEs and only found that withdrawals were not available shortly after deposit.
“We are working to re-enable the wallet as soon as possible, but we do not have an estimate on the schedule at this time,” Poloniex later announced.
What drove the price of Dogecoin?
The factors that would be behind the boom are several, but all stem from the frenzy started by Reddit users grouped in WallStreetBets.
A Twitter account identified as @WSBChairman, posing as the “president” of the Reddit group, asked his followers:
“Has Doge ever been on a dollar?” Which would have driven the price. The message already accumulates more than 30 thousand likes and almost 6 thousand retweets.
Another group on Reddit, identified as SatoshiStreetBets, would also be promoting the purchase of the cryptocurrency to raise its price in the markets. A high percentage of the messages of the users encourages to maintain their positions to bring the price to 1 dollar per unit.