DOGS, the popular Telegram meme coin, has experienced a significant downturn as market enthusiasm has declined.

DOGS Token Sell-Off Continues

The DOGS token price has dropped by over 38% from its highest level last week, currently trading at $0.0011, its lowest level since August 26. This decline is accompanied by a sharp drop in its trading volume on both centralized and decentralized exchanges. Data indicates that its 24-hour volume on Monday was $490 million, down from last week’s peak of $1.8 million, marking the lowest intraday volume since it began trading.

Additionally, the token’s futures open interest has decreased, suggesting waning demand among investors. Its open interest has fallen to $118 million, down from last week’s high of $149 million.

Reasons for the DOGS Token Decline

The decline in the DOGS token can be attributed to three primary factors:

1. Fading News Impact

The initial surge in DOGS’ popularity occurred following the arrest of Pavel Durov, the founder of Telegram, in France. Durov is facing up to ten years in prison for activities conducted on the app. This news sparked significant interest among crypto enthusiasts. However, as the news impact fades, the hype around DOGS has diminished.

2. Waning Crypto Sentiment

The overall sentiment in the crypto industry has cooled, particularly as Bitcoin remains rangebound between $57,000 and $60,000. Altcoins, including DOGS, often struggle to find direction when Bitcoin is stagnant.

3. Typical New Token Behavior

Newly launched tokens often experience an initial price surge followed by a decline as early investors start to sell off their holdings. DOGS is no exception, mirroring the price action of other Telegram tokens like Notcoin and Pixelverse, which saw significant drops after initial peaks.

There is a risk that the DOGS token may continue to fall in the near term as investors who bought during the airdrop continue to sell.

Other Telegram tokens have shown similar trends. Notcoin initially jumped to a high of $0.02930 before crashing by over 71% to $0.0083. Similarly, Pixelverse (PIXFI) rose to $0.10 after its airdrop but has since dropped by over 93% from its all-time high. This suggests that DOGS could potentially drop below the psychological level of $0.0010 if the selling pressure continues.

For more updates on the latest cryptocurrency news and trends, stay tuned to Global Crypto News.

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