Dogecoin is plummeting again and is in need of Musk's support to ensure further growth

Dogecoin is one of the largest and the most popular meme coins in the crypto market and has recently experienced a rollercoaster ride since the crypto market meltdown. The joke coin was launched into the market in 2013 and since then has garnered the attention of several tech celebrities like Elon Musk and Snoop Dogg. Earlier, DOGE did not yield many use cases except for a few fundraising and donation opportunities. But Elon decided to put Dogecoin to good use by deploying it in Tesla for payments, he is also planning on using DOGE for accepting donations and making payments on Twitter too. But despite its massive popularity, crypto analysts and experts have always considered DOGE as extremely volatile and not worthy of long-term investments. Since 2021, crypto has risen considerably, but its volatility has pushed away more investors than it has attracted. Quite similarly, since Dogecoin has been in its recovery journey, it has surprisingly risen but has also managed to plummet quite shortly after.

Analysts believe that during such crypto bear market conditions, the digital currency has managed to spike amid crypto bearish market trends due to Musk's growing support for DOGE on Twitter. Musk was recently sued by a DOGE investor who claimed that the tech billionaire is using his position to influence DOGE's price and has also initiated a Dogecoin pyramid scheme to garner profits, more self-exposure, and amusement. But despite these allegations, Musk said that he would continue to support crypto and will continue to promote it. This in turn quite positively impacted the value of the crypto, triggering hopes of bullish price rallies. But the happy days were quite short-lived. Market observers are already tracking Dogecoin's price retreating to its old territory and are once again turning red! It seems like to enable a further bullish price rally, the crypto will constantly need support from influencers.

But why did Dogecoin plummet again?

According to reports, analysts believe that the declining popularity of meme coins is one of the major reasons why Dogecoin's price is constantly dropping and requires considerable amounts of support to grow. The lack of proper utility of meme coins has made them extremely less attractive in an already dangerous market. Even though Dogecoin is one of the first meme coins in the market, its plummeting value only demonstrates that the crypto analysts might be accurate and that DOGE is not worthy of long-term investment strategies.

Besides this, the other reason why Dogecoin is dropping is due to the aggressive sell-off season. This is why the number of Dogecoin holders is dropping quite rapidly, with whales quite rapidly dumping off their investments. Reports have revealed that a huge number of DOGE whales are selling off their investments, triggering over 80% loss since the token's all-time highs. Furthermore, DOGE happens to be an inflationary coin and with its ever-increasingly supply in the market, a large number of investors are selling off their investments to avoid further losses. Amid these selling pressures on the crypto, other investors are quite closely monitoring Dogecoin and the upcoming upgrades on its network.

Can Musk's tweets help increase Dogecoin's market value?

Well, to answer this question, Musk's tweets are the primary factor that makes DOGE one of the most volatile cryptos in the market. The broader cryptocurrency market investors are at crossroads, contemplating whether or not to sell off their remaining investments or buy off the dips. Currently, the Dogecoin mania has considerably cooled since Musk's first tweet about it and is only being considered as an entertainment value to the investor community. DOGE enthusiasts definitely consider the crypto's future as bright, yielding several real-world use cases, but considering its present conditions and lack of bullish rallies, the crypto is in need of massive support from market influencers.