Cryptocurrencies

Is dogecoin on the verge of dying? Crypto market volatility will decide it

Dogecoin (DOGE) does not need any introduction to the highly volatile crypto market with its meme coin characteristics and constant support from the Dogefather

Elon Musk. The degree of crypto market volatility is very high with constant fluctuations in cryptocurrency prices that can lead to either profit or loss in crypto wallets. Elon Musk is the ultimate crypto influencer who holds the power to control and mitigate the Dogecoin price in the crypto market volatility ecosystem efficiently. DOGE tokens can often benefit crypto investors who are focused on the meme coin with real-life cases. Let’s dig deep into the crypto market volatility to see if it can save Dogecoin or let the meme coin on the verge of dying in the nearby future.

At the time of writing, the current DOGE price is US$0.06642 with a market cap of US$8,826,946,821.85 and a market rank of 10 out of thousands of cryptocurrencies. Elon Musk has recently announced that Tesla has kept all of its Dogecoin holdings and sold off Bitcoin holdings. This news has again created an impact on the meme coin price in the crypto market volatility ecosystem. The Dogecoin management has announced that there is a release of a new core upgrade for a more effective and secured network for all DOGE investors.

The crypto market volatility is calculated in a particular way — a cryptocurrency that experiences erratic price changes

efficiently hits the new high price, while the lows are recognized as highly volatile. If a cryptocurrency has a relatively stable price change, it has low volatility, while a cryptocurrency with high volatility is very risky for crypto investors. Similarly, Dogecoin has two types of volatility in the crypto market volatility ecosystem — historical volatility and implied volatility. The meme coin also consists of an unsystematic risk that holds the potential risk that events dedicated to Dogecoin can dramatically affect the DOGE price. Meanwhile, the systematic risk shows the overall crypto market volatility movements can create an impact on the DOGE price.

The crypto market volatility is a very big risk for Dogecoin investments, especially after the continuous crypto crashes of Bitcoin, Ethereum, Tether, and Terra. The volatility degree depends on multiple extreme market conditions such as wars, inflations, interest rates, recessions, pandemics, and many others. Some crypto investors and crypto analysts have predicted that the crypto market will show the same volatility in the nearby future while some consider that some stability can be expected in the second half of 2022.

If Dogecoin does not want to be on the verge of dying due to the crypto market volatility, the meme coin needs to work on some effective strategies similar to Shiba Inu. Shiba Inu is struggling to reach US$1 but is overtaking Bitcoin with its performances through Shibburn and four key development projects for its crypto investors. It also needs to attract the attention of ETH whales to increase its price to be in the highly volatile cryptocurrency market.

That being said, it is impossible to predict whether Dogecoin is on the verge of dying with the constant support from Elon Musk and the crypto market volatility.