Dogecoin’s price action has been sideways for a while now, and the token could be poised for a sell-off.
It’s been a rough year for cryptocurrency investors. While stock prices continue to skyrocket, mainstream crypto tokens and altcoins alike are experiencing downward pressure to begin the new year.
Last year, XRP’s price had climbed as high as 71% — only to end the year down 10%. What in the world happened?
XRP’s issuer, financial technology firm Ripple, had been stuck in a years-long contest with the Securities and Exchange Commission (SEC). At its core, regulators and Ripple were arguing over whether the sale of an XRP token should be deemed a security.
Last year, the SEC finally dropped its appeal against Ripple. Some viewed this as a major victory for both the company and the cryptocurrency industry, which has been at odds with regulators for years.
From there, some investors began stitching together a broader bullish thesis for Ripple — one that includes accelerating stablecoin adoption and the introduction of XRP-themed exchange-traded funds (ETFs).
This narrative briefly fueled a rally in the XRP token. However, throughout the latter half of the year, its price slid in epic fashion.
In my eyes, smart investors understand that Ripple’s payments network and the underlying utility of XRP as a bridge currency in the cross-border transactions market are two separate things. While Ripple’s infrastructure is linked to XRP, adoption of its payment network does not require using the XRP token.
Against this backdrop, there is no guarantee that XRP will ever truly disrupt global commerce as the narrative once suggested. For these reasons, I think XRP has fallen out of favor with growth investors, and I would not be surprised to see its price approach $1 by year-end.
As investors can see, there has been one fleeting moment over the last 18 months where you could have made money in Dogecoin. The kicker? Your timing had to be flawless.
Dogecoin’s price oscillates with narratives often drummed up on social media or in chat rooms. The catalyst behind Dogecoin’s lone spike in November 2024 was the outcome of the U.S. presidential election.
Rather, it was because Elon Musk — who has an affinity for memes and for Dogecoin — was tapped to lead the short-lived Department of Government Efficiency, which used the moniker DOGE as an acronym. While a rally briefly ensued, investors quickly realized that the DOGE organization was completely independent of anything related to Dogecoin.
I think a combination of macro headwinds pressuring the broader crypto market and Dogecoin’s lack of a true value proposition could fuel further selling throughout 2026.
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Adam Spatacco has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and XRP. The Motley Fool has a disclosure policy.
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