Dogecoin, the popular meme-inspired cryptocurrency, has experienced a setback, with its price taking a 3% hit and its market cap falling below that of Cardano. This recent decline follows a period of bullish momentum for Dogecoin, during which it briefly surpassed the $0.083 mark. However, the past couple of days have seen the coin’s price retract noticeably, leaving investors wondering about its future trajectory.

After experiencing a 3% decline, Dogecoin is currently trading around $0.0767. The accompanying chart demonstrates the recent fluctuations in DOGE’s price. Despite this dip, Dogecoin continues to maintain a gain of over 6% for the week, making it one of the top-performing assets in the market. However, it remains uncertain how long this trend will persist, as the meme coin appears to be losing steam.

In recent times, Dogecoin managed to climb to the 7th position in terms of market capitalization, elevating it to the ranks of the largest cryptocurrencies. Alas, the recent decline in price has prompted Cardano to regain its position, relegating Dogecoin back to the 8th spot. Nonetheless, the gap between these two cryptocurrencies is currently not substantial, leaving room for Dogecoin to potentially surpass Cardano once again, should it manage to retrace some of its recent decline.

Coinciding with the start of Dogecoin’s decline, data from cryptocurrency transaction tracker service Whale Alert reveals two significant moves made by large-scale holders of the digital asset. The first transaction involved the transfer of 85 million DOGE (equivalent to $6,943,166 USD) from Robinhood to an unknown wallet. It is unusual for large investors to withdraw their coins from centralized platforms like Robinhood unless they are looking to accumulate or engage in peer-to-peer (P2P) transactions. Interestingly, the unknown wallet was promptly emptied not long after the withdrawal, indicating a potential intent to sell through P2P deals.

The second transaction involved the transfer of 250 million DOGE (equivalent to $20,314,243 USD) between two unknown wallets, which further suggests the possibility of P2P selling activities taking place.

Recent discussions in the market have centered around Elon Musk’s involvement with Dogecoin. During a Twitter rebranding announcement, Musk hinted at potential implementations related to Dogecoin on the platform. However, despite the anticipation, no tangible developments have materialized thus far. This lack of progress could potentially lead some investors to reconsider their investments in the meme coin.

Dogecoin’s recent decline and subsequent slip in market cap below Cardano have raised concerns among investors. While the coin still remains one of the top performers in a predominantly bearish market, its future trajectory is uncertain. Coinciding with the decline, whale activities and the lack of progress regarding Elon Musk’s Dogecoin-related hints may have contributed to the current market sentiment. As the landscape evolves, investors will closely monitor Dogecoin’s performance to gauge its potential for a comeback or prolonged cooling.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.