Panic Selling Pushes DOGE Price To Plummet; Now 90% Down From Last Year's All-Time High

Dogecoin holders' panic selling pushed the dog-themed crypto asset to plummet 90 percent from its all-time high of $0.7376 as the crypto market crashed.

It has been a tough week for Dogecoin as it entered the red zone and traded on a downtrend. As early as 5:00 a.m. ET on Thursday, the altcoin was trading down 27.78 percent at $0.07647 based on the data from CoinMarketCap.

The downtrend, analysts believe, was an overblown reaction to a long-term decline that not only Dogecoin experienced but the general and cryptocurrency markets. The altcoin's plummeting price is rather a protraction of the Dogecoin's downtrend, which started Monday when it exhibited a bearish breakdown from a downward triangle pattern on the chart.

Most crypto holders became worried when DOGE's price continued to downtrend, which resulted in panic selling. This investor behavior occurs when the price declines rapidly on a high volume.

DOGE's current price is a far cry from its all-time high last year when tech billionaire Elon Musk, a known Dogecoin enthusiast, hosted the American comedy show "Saturday Night Live." Dogecoin's market capitalization skyrocketed to $90 billion at the time of the over-hyped event, making the altcoin more valuable than established companies like General Motors.

The billionaire's hosting debut was a "sell the news" event, which saw the price nosedive a few hours after. Since then, DOGE has not recovered even though major industry names like Tesla and Gucci accepted it as a payment option.

Last month, the crypto asset enjoyed green trading, especially during the time when Musk announced it wants to acquire Twitter. However, that too was not enough to prevent DOGE from falling prey to the crash.

The altcoin's Relative Strength Index ( RSI ) measured at about 19 percent, putting the world's first-ever meme coin in oversold territory. When the crypto's RSI falls under the 30 percent mark, it is considered oversold, which for many investors hoping to catch a bounce, could be a signal to buy.

Dogecoin was trading down 27.16 percent at $0.07733 with a 24-hour volume of $3,294,005,324 as of 5:37 a.m. ET on Thursday based on the latest data from CoinMarketCap.