Dogecoin (DOGE) Falls 5% in Line with Crypto Market Trend

In line with the broader trend in the crypto market, Dogecoin (DOGE) has experienced a 5% decrease in value over the course of a week. This decline comes after a 15% price rally following the news of Ripple (XRP) securing a partial victory in its legal battle with the U.S. Securities and Exchange Commission (SEC) on July 13th.

The court ruling stated that the sale of Ripple’s XRP tokens did not constitute investment contracts and therefore were not considered securities. However, it also ruled that the institutional sale of XRP tokens violated federal securities laws. This judgement was quickly embraced by the crypto industry, resulting in a price rally across various tokens.

Elon Musk, the CEO of Tesla and Twitter, has played a significant role in shaping the perception of Dogecoin. Musk has been a vocal supporter of the meme-inspired cryptocurrency, frequently tweeting about it and referencing it whenever possible. However, Musk has faced allegations of insider trading and manipulating Dogecoin, leading to a class action lawsuit against him.

Musk’s influence on Dogecoin’s price action has been undeniable. His tweets in 2021 had a direct impact on the coin’s value, contributing to its significant all-time hike of 27,668%. However, the correlation between Musk and Dogecoin weakened in 2022, with his tweets having little effect on the price.

Recently, Musk changed his Twitter logo to a dog, representing Dogecoin, resulting in a 30% price increase in less than 24 hours. However, this increase was short-lived. Despite the fluctuating correlation between Musk and Dogecoin, there is still a strong connection between the two entities.

In terms of Dogecoin’s development, not much has been happening within its ecosystem. However, there have been announcements regarding the project’s core development release and plans for future updates. As for its price action, Dogecoin experienced a drop following the SEC’s enforcement action against Binance and Coinbase.

While the future of Dogecoin remains uncertain, with conflicting on-chart metrics and the potential for both ups and downs, investors should conduct thorough research before making any investment decisions.