A major slump has deep rooted in the core of digital currency market on Monday the 11th April, 2022. The slump brought the values of some of the digital currencies wherein the decrease was recorded as high as 9% and as low as 6% for the leading cryptocurrencies. At least 6 to 9% decrease in value was shared amongst Bitcoin, Dogecoin, Solana, Ethereum, LUNA and SOL etc.
Crypto Market’s Failure in Rebounding
Although the first quarter of 2022 has concluded yet the crypto economy has failed to rebound to its status that prevailed prior to 2021’s end. Since November 2021, a lot of expectations were attributed by crypto community yet none of them succeeded. Even those which were achieved, failed to attract attention because the crypto market capital was declining continuously. Most importantly cryptocurrencies like Bitcoin and Ethereum, the two leaders of the economy, failed to make any gains. However, they even failed to rebound and go near to the values that they had prior to November 13, 2021.
It is therefore very unlikely that the market will take any positive shift in the recent times. In fact further downturn is expected if the top-20 lead coins fail to make any difference at all. At the same time crypto trading investment and trade volume is likely to feel the jolt and could be seen declining further.
What has happened on Monday the 11th April was a deep slump took place in the crypto economy. As a result of the slump, Bitcoin lost at least 6% in terms of value and started to trade below US$ 40K. Similarly, Ethereum too lost great deal of value as it saw its average going down by 6 to 9% approximately. Resultantly, Ethereum had to see its coin selling @ below US$ 3,000.
Impacts of Slump
However, amongst the three digital currencies namely Bitcoin, Ethereum and Dogecoin, it was the third currency which suffered the most in the recent slump. While Bitcoin and Ehtereum lost values with an average decline rate of 6% yet the rate for DOGE was above 6 and approximately 9%. In fact the decrease rate of 9% was the highest in the slump which unfortunately had to be borne by DOGE. In these circumstances, of course the investment climate has been hurt badly and Dogecoin price has gone down to US$ 0.135.
It is now believed that there are ramifications which have the potential of bringing DOGE’s price further down, if they happen to take effect. First of all, it is widely believed that the massive increase in the inflation rates in the US will bring more ramifications for DOGE. On the other hand, the shrinkage of Federal Reserve’s balance sheet is yet another dilemma for DOGE and its future progress. At the same time, even today the yield is still ticking on the higher side with regard to US Treasury Bill.
Thirdly, and perhaps most importantly, Elon Musk’s refusal not to become member of Board of Directors of Twitter could have severe impact as well.
Leading Coins’ Jeopardy
As compared to Bitcoin and Ethereum, Doge has had to face a value decline of maximum of 10% while the former saw 6% decrease. The slump immediately brought Ethereum and Bitcoin both to be traded below their support value of US$ 3,000 and US$ 40,000 respectively. On the other hand, Dogecoin is showing signs of accelerating further down below the support level of US$ 0.135. In a very short period of time it is expected that DOGE’s value would go down further. According to an estimate, if slump occurs then it is the new DOGE price would be US$ 0.132 in the first place and US$ 0.125 in the next (which is yet another commendable support level).
The market conditions were also the same for BNB, XRP, ADA and SOL as they were for DOGE. Their values too got declined with an average between 7 to 10% on Monday. At the present moment, their individual values are struggling to bring about the stability and further decrease in their values is inevitable.