Dogecoin tanks 12% to wipe out weekly gains; here's why

economictimes.indiatimes.com:

Dogecoin — plunged as much as 12 per cent in Wednesday's trade, wiping out entire weekly gains, data from Coinmarketcap suggested. According to the data, Dogecoin plunged to $0.06464 from $0.07295, before recovering to $0.06515 at 13.00 hours IST. Edul Patel, Co-Founder and CEO, Mudrex said Dogecoin saw a massive increase in its price after Tesla founder Elon Musk supported the crypto at the Qatar Economic Forum.

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«The meme token started to fall on Tuesday with an increase in the bearish sentiment in the market. Further, an announcement by Crypto.com that it is removing DOGE also put pressure on the coin,» he added. Adding to it, Taaran Chanana, MD and Co-Founder, MemeChat said Crypto.com recently announced that they are removing 15 cryptocurrencies from its crypto Earn Rewards program and Dogecoin is one of them. Musk, the richest man on the planet, has been a Dogecoin supporter and his tweets have often pushed the prices of the token higher. Fondly called 'Doge Father' by the community, Musk recently extended his support for the meme token. «When it comes to meme coins, their utility was always questionable. Due to social influence, they had gained unfair valuations. They are all getting corrected now.» said Sathvik Vishwanath, Co-Founder & CEO, Unocoin. However, not only Dogecoin, other crypto tokens have been bleeding lately. Tokens like Chiliz, Enjin Coin, Helium, Aave and Mina have plunged between 11-14 per cent. Top tokens including Bitcoin, Ethereum and BNB were also down. Global financial markets are down and cryptocurrencies are no exception,