Dogecoin: Why did prices fall? Could it reach $7?

Dogecoin and other major cryptocurrencies dropped in value last week, and all of their drops might be linked. Here’s a rundown of what happened to Dogecoin and the latest updates from the cryptocurrency market.

Did Dogecoin drop in price?

Yes. The cryptocurrency dogecoin is currently worth $0.33. The price for a single dogecoin was once worth $0.74 and hovered around $0.40 in the last week, according to CoinDesk.com, which monitors cryptocurrency values.

Mark Cuban explains Dogecoin drop

Dallas Mavericks owner Mark Cuban recently took to Twitter to explain why cryptocurrencies fell in the last few weeks. He said it was an example of the “Great Unwind.”

• His explanation is full of technical jargon about cryptocurrency. But it suggests investors are pulling out their earnings.
• He said “new money” will help lift cryptocurrencies. He used the rocket emojis, which suggests that “new money” will send cryptos to the moon.

Will Dogecoin reach $1?

Jenny Ta, the founder and CEO of CoinLinked.com, said dogecoins will reach $1. She said Dogecoin will reach a market cap of $1 trillion — it’s currently about $44 billion — which would make a single dogecoin worth $7 or $8 per coin, according to Benzinga.

• For a coin that’s currently worth about $0.30, that’s a huge jump.

Ta said Dogecoin wouldn’t have the opportunity to reach its high value without Bitcoin there to help.

Elon Musk tweets about Dogecoin

Tesla CEO Elon Musk — who has often been a supporter of Dogecoin — tweeted about Doge over the last weekend. He tweeted a purple picture with the text “Cyberviking” and added a caption that said, “how much is that Doge in the window?”

This is another example of Musk mentioning the cryptocurrency, which could build hype for the currency. Dogecoin relies on social media hype to rise in value.