What happened
After enjoying rally momentum recently, the crypto market is pulling back in today's trading, and Dogecoin (DOGE 2.22%) is participating in the sell-off. The popular meme-themed token was down roughly 5.1% over the previous 24-hour period as of 12:15 p.m. ET Tuesday.
Most of the top 15 largest cryptocurrencies were also down over the last day of trading, but the volatility is hardly outside the norm, and investors probably shouldn't read too much into the sell-offs. Following steep valuation declines through much of December and January, the crypto market has generally been on a recovery trend early in February. Even with today's sell-off, Dogecoin is still up roughly 7.7% over the last week of trading.
Image source: Getty Images.
So what
Dogecoin has mostly been trading in line with the broader cryptocurrency market lately, but there could be another pricing catalyst in the very near future. The Super Bowl is set to take place this Sunday, and rumors are circulating that a Dogecoin advertisement could be slated for the broadcast.
The Super Bowl is typically the most watched live-broadcast event in a given year, and the ads played during the show have become a spectacle in their own right. Cryptocurrency-related companies including FTX, Crypto.com, and Binance are expected to run ads during this year's big game, and some Dogecoin investors are hoping that the token gets a boost from advertising during the event.
Now what
Dogecoin has seen volatile trading over the last year, but it's still up big over the stretch.
Dogecoin Price data by YCharts
Even with the cryptocurrency down roughly 79% from the pricing peak that it hit roughly nine months ago, investors who bought at opportune moments have seen stellar gains. What comes next is less certain.
Dogecoin has amassed a large and enthusiastic base of supporters, and it also has backing from some influential figures -- most notably Tesla CEO Elon Musk. The token could potentially go on to enjoy more explosive pricing gains, but investors should move forward with the understanding that the dog-themed cryptocurrency remains a high-risk bet.
Dogecoin now has a market capitalization of roughly $20.5 billion, and it ranks as the 12th largest cryptocurrency by valuation.
