In the dynamic realm of cryptocurrencies, XRP and DOGE, once high-flyers, have recently taken a hit. As of August 17th, these digital assets have faced notable drops in their values, painting a perplexing picture against a backdrop of favorable fundamental developments.
XRP, the intrinsic coin of the XRP Ledger crafted by Ripple Labs, has witnessed a 10% decline in the last week. Meanwhile, DOGE, the iconic meme-based coin, has suffered even more, experiencing a substantial 13% decrease over the same trading period. Intriguingly, this puts them on par with other strugglers like MATIC, down 13%, and SHIB, the Shiba Inu token, which has slipped by 15% during this timeframe.
The plummeting values of these altcoins stand out, especially when considering their recent advancements. Interestingly, it’s not just these two coins that are undergoing sell-offs; traders seem more inclined towards parting ways with DOGE and SHIB, prominent meme coins, and specific decentralized finance (DeFi) tokens. Notably, UNI, the predominant decentralized exchange (DEX) token, has experienced a 15% dip, despite its substantial role in the DeFi space. Similarly, LDO, the backbone of the most extensive DeFi protocol by total value locked (TVL), has also seen a 10% fall.
The trend becomes more pronounced as you look at the broader altcoin market. While Bitcoin has been enduring price fluctuations, altcoins seem to be grappling with intensified selling pressures. As Bitcoin’s price slid below the “bull flag” on the daily chart, indicating bearish dominance, altcoins felt the tremors of this market shift.
It’s noteworthy that the relationship between Bitcoin and altcoins is inherently interconnected. Given the correlation, every dip in Bitcoin’s value could potentially exacerbate losses for altcoins. Despite Bitcoin’s bullish stance within the June to July 2023 trading range, its downward slides could cast a shadow over the altcoin market in the near future.
The recent downturn in XRP’s fortunes follows a significant legal victory for the coin. A U.S. court declared that XRP is not a security, overturning the Securities and Exchange Commission’s (SEC) stance. This momentary triumph elevated Bitcoin to $31,800 and briefly propelled XRP above $0.80. However, XRP’s current retreat, down 10% in the last week alone, appears to push it back toward the $0.45 range.
On the other hand, DOGE, known for its playful origins, has an intriguing mission on the horizon. The upcoming “Mission DOGE-1,” slated for later this year, is set to be fully financed using DOGE coins. Although the mission faced initial delays, its unconventional funding method adds another layer of curiosity to cryptocurrencies.
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