Dogecoin (DOGE), one of the most popular meme-inspired cryptocurrencies, is experiencing a notable dip in price after last week’s impressive rally. As of Monday, Dogecoin’s value has dropped by 4.4% over the past 24 hours, trading lower compared to itcoin">Bitcoin, which was down 0.4%, and Ethereum, down 2.2%. Despite this pullback, Dogecoin remains the best-performing cryptocurrency among the top 10 by market capitalization over the past week, boasting an 11.5% gain.
The recent rally in Dogecoin’s price was largely driven by excitement surrounding the approval of the REX-Osprey Dogecoin ETF by the Securities and Exchange Commission (SEC). This ETF, set to launch under the ticker “DOJE” on September 17, aims to provide institutional investors greater exposure to the meme coin. However, the current price decline may reflect a “buy the rumor, sell the news” pattern, where optimistic speculators take profits in anticipation of or following a major event.
In addition to ETF-related momentum, news of companies incorporating Dogecoin into their cryptocurrency treasury strategies has also fueled investor optimism. The increased involvement of institutional players signals growing interest in Dogecoin beyond its meme roots. Nonetheless, experts caution that Dogecoin remains a high-risk asset, and its volatility underscores the need for careful consideration by investors.
While this recent dip could signify a short-term correction, many analysts believe Dogecoin’s upward potential remains intact due to the broader crypto market’s increased adoption and innovation. With the launch of the Dogecoin ETF just days away, all eyes are on DOGE to see if it can sustain its gains or whether further corrections lie ahead. As ever, market participants and institutional support will be pivotal in shaping Dogecoin’s trajectory in the near term.
