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Dogecoin, the renowned meme-inspired cryptocurrency, has been grappling with a sluggish downturn in its value that has left investors on edge. Currently struggling to hold ground above the $0.080 mark, Dogecoin has witnessed a 4.05% drop in the past 24 hours, contrasting with a modest 1.92% weekly increase.
A glimmer of hope shone briefly on January 21, when DOGE surged by 12.8% within a nine-hour timeframe, peaking at a seven-day high of $0.08978, only to retreat once again. As of the latest update, DOGE stands at $0.08275. This dip in performance aligns with the broader crypto market’s recent struggles, triggered by selling pressure following the approval of spot Bitcoin ETFs in the United States.
Source: Coinmarketcap
Dogecoin Social Dominance On The Rise
Despite these challenges, Dogecoin’s on-chain metrics suggest a potential path to recovery. Notably, the recent launch of a dedicated payments account handle, @xpayments, on Elon Musk’s X platform has garnered substantial attention, amassing over 100,000 followers. This development has ignited anticipation among Dogecoin holders, hinting at the cryptocurrency’s potential acceptance as a means of payment.
Doge is rising as speculation abounds from the creation of the @Xpayments account
Elon has never erred in his support of Doge, even against tremendous pressure during a prolonged bear market
𝕏 Payments is the utility that Doge deserves—Giving The People control of their money!
— 💸💸💸 (@itsALLrisky) January 20, 2024
Examining on-chain metrics, including volume and social dominance, offers insights into Dogecoin’s future trajectory. According to Santiment, a blockchain analytics platform, the surge in volume from 298.68 million to 1.17 billion on January 21 signals an increasing relevance and demand for the coin.
Social dominance, a key metric gauging a cryptocurrency’s popularity in the social media space, has also witnessed a notable rise. Starting at 1.14% on January 1, DOGE’s social dominance climbed to 3.45% on January 21. This increase, coupled with rising volume and active addresses, is traditionally viewed as a bullish sign for an asset.
Market participants are now speculating that Dogecoin could soon find utility as a payment method on Elon Musk’s platform, X. The anticipation of such an announcement is believed to be a driving force behind the potential rally in Dogecoin’s price in the coming days.
While Dogecoin faces headwinds amidst the broader crypto market challenges, optimistic indicators from on-chain metrics and the prospect of mainstream adoption through Elon Musk’s initiatives leave room for potential recovery in the near future.
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