The price of popular cryptocurrencies Dogecoin (DOGE) and XRP (XRP) have each fallen as much as 15% in the last 24 hours amid a sharp selloff in altcoins.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
Volatility spiked during Asian trading, pushing prices down for altcoins, which refers to any cryptocurrencies other than Bitcoin (BTC). Cryptos such as Cardano (ADA) are also down substantially as selling pressure intensifies.
At the same time, Bitcoin’s price has pulled back about 3% and Ethereum’s (ETH) price has fallen 7% in the last 24 hours as traders and investors appear to be taking profits after a big run in cryptocurrencies. Bitcoin had risen to an all-time high of just under $104,000 and Ethereum breached the $4,000 level in the past week, leading to a run in altcoins as well.
Selling Pressure
The market capitalization of cryptocurrencies has dropped nearly 7% in the past day, the largest 24-hour decrease since October of this year. Analysts say the current selling pressure is being driven by an overheated market.
Some analysts are warning that cryptocurrency traders appear to be over-leveraged, which could lead to accelerated selling in coming days. Leverage refers to debt and loans that traders and investors takeout to buy securities, including cryptocurrencies.
The price of DOGE is currently at $0.38 a token, having risen 407% on the year.
Is DOGE a Buy?
Most Wall Street firms don’t offer ratings or price targets on Dogecoin, so instead we look at the cryptocurrency’s three-month performance. As one can see in the chart below, the price of DOGE has increased 347% in the last 12 weeks, which is an exceptional result.
