After skyrocketing, the price of Dogecoin drops by around 48% in just 24 hours. Reddit groups WallStreetBets and SatoshiStreetBets are looking to drive the price to one US dollar.
After an increase that showed the frenzy of crowds and the magic of memes, the price of Dogecoin (DOGE) recently fell by almost 48%. The digital currency pulled back from the high of USD 0.06, with which it reached just USD 0.021.
This cryptocurrency, which emerged as a joke about the popular “Doge” meme, had skyrocketed to 800% in one of its markets. That happened after Reddit turned its attention to it, and the number of comments to make it the equivalent of GameStop increased.
Dogecoin reached an all-time price high of 0.078 US cents per unit. Furthermore, its market capitalization exceeded USD 10 billion for the first time, which no one could even imagine a few years ago.
Robinhood Suspends Instant Deposits for Cryptocurrency Purchases
Stock and cryptocurrency trading platform Robinhood recently temporarily disabled instant deposits for cryptocurrency purchases. They cited “extraordinary market conditions” as the reason for this.
Users of the platform can buy cryptocurrencies with settled funds that they have previously deposited. However, such deposits may take up to five business days for their clearing.
Many have recently criticized Robinhood for suspending the trading of several traditional stocks. These include those of GameStop, a company that received support from retail investors to the detriment of Wall Street hedge funds.
DOGE’s Rapid Price Rise Complicates Its Withdrawal
There are increasing problems with withdrawing DOGE on the main cryptocurrency exchanges. Several cryptocurrency users said on Twitter that exchanges had temporarily disabled withdrawals of this crypto asset.
The exchanges affected included some of the major cryptocurrency platforms such as Poloniex. Some users logged into this latter exchange, which is compatible with Dogecoin, to buy some coins of this cryptocurrency. However, they only found that withdrawals were not available shortly after they had made the deposit.
“We are working to re-enable the wallet as soon as possible, but we do not have an estimate on the schedule at this time,” Poloniex later announced. That situation upset some users very much, who demanded that the exchange pay them their money at a fair value.
The Factors That Have Driven the Price of DOGE Higher
There are several factors behind the DOGE price boom, stemming from the frenzy that users in the Reddit group WallStreetBets initiated. These roughly 2 million users had previously bought a lot of GameStop shares to drive the value of the company higher.
The Twitter user identified as @WSBChairman poses as the “president” of the Reddit group. He asked their followers if DOGE has ever been worth one US dollar, which may have driven the price up. That message has already achieved more than 30 thousand likes and almost 6 thousand retweets.
For their part, the Reddit group SatoshiStreetBets could also be promoting the purchase of the cryptocurrency so that its price grows in the markets. A high number of users encourage holders to keep their coins to bring the price to USD 1 per unit.
By Alexander Salazar
