If you have been keeping an eye on DOGE performance for the last few days then you may have noticed that Dogecoin’s price has been relatively inactive. It seems to have lost its bark and its bite in the last few days with its price hovering around the $0.20 price level.

While the recent bullish sentiments in the cryptocurrency market fueled a substantial price recovery for many of the top cryptocurrencies, the same cannot be said for DOGE. It has so far maintained a bearish performance ever since peaking at $0.73 in May. It recently bottomed out at $0.15 on July 20 but has only recovered to $0.20 at the time of this press, which is the price level at which it has been hovering for the last few days.

Source: Binance

Reasons behind Dogecoin’s current performance

Dogecoin’s relatively stable price is unusual considering that it was one of the most volatile cryptocurrencies just a few months ago. However, its performance reflects its declining buying and selling volumes, which was also probably why it failed to achieve more significant gains during the recent crypto market recovery. However, we must explore the forces behind its previous gains and price drops to fully understand the weak price action.

The rise of Dogecoin was a culmination of its memecoin status but more importantly, the fact that it found favor with retail traders who had just exited their positions in Gamestop and were looking for the next rally opportunity. A lot of money was poured into Dogecoin earlier this year, fueling its parabolic run. DOGE also secured the backing of Tesla CEO Elon Musk and the culmination of these factors acted as a powerful catalyst that drove up its value.

Dogecoin’s popularity also meant that it was highly susceptible to FUD and this was reflected by its sharp price drops whenever some negative remarks were made about it, especially by the Dogefather.  There have recently been no catalysts that are enough to bring some excitement into Dogecoin trading. Its market cap also dropped from above $30 billion to its current level at $26 billion, indicating that most of the retail traders have exited and those who hold the cryptocurrency are hodlers or sitting in losing positions that they are hoping to ride out till the price recovers.

Will Dogecoin return to higher price levels?

Dogecoin will likely test previous highs if it experiences another influx of retail investors, and this will likely happen during the next major crypto bull run. The chances of organic growth are very minimal given that the cryptocurrency does not have any special use cases outside speculation. However, it might gain some attention if it secures more retail adoption. Fortunately, this seems to be shaping up albeit slowly.

Oscar Mayer, a brand that sells food products recently auctioned a pack of Hot Doge Wieners complete with the Dogecoin branding as part of a limited edition offering. Each pack costs 10,000 Dogecoins which is equivalent to $2,000 at its current price. This is not the first branding of its kind to support Dogecoin. Famous body spray brand, AXE, previously made limited edition Dogecans as part of a marketing campaign.  Such campaigns may pave the way for more Dogecoin adoption and acceptance as a form of payment by more retail outlets. Such developments would put Dogecoin back on the path to its former glory.