Dogecoin (DOGE) may have returned to the top ten cryptocurrency by market capitalization, but the loss in terms of USD and Bitcoin (BTC) is huge as Elon Musk’s SNL appearance is huge.
Dogecoin loses the Musk-effect
The DOGE/BTC trading pair has fallen by 75% since peaking at 1,287 satoshis on May 9, 2021.
Prior to the appearance, the billionaire entrepreneur had been constantly tweeting images of Dogecoin memes, which helped DOGE — a cryptocurrency that started as a joke — reach a market capitalization north of $90 billion by May 2021.
That’s a gain of over 36,000% in two years. But things have gone downhill since then.
Investors can get their hopes up from Mook on SNL to DOGE, prompting his 106 million followers to buy meme-tokens. But Musk did something unexpected: he called Dogecoin a “chaos”.
A day later, the doge began its decline to an all-time high. It changed hands for about 300 satoshis and continued its downtrend to a high of 1,287 satoshis.
Similarly, Dogecoin’s price has fallen more than 90% against the US dollar since peaking at $0.76 in May 2021.
Elon Musk’s efforts to make Dogecoin relevant
Musk has since made several efforts to stimulate people’s interest in Dogecoin.
In May 2021 he revealed It has been working with Dogecoin developers to improve blockchain transaction efficiency since 2019. Additionally, Musk’s Tesla and SpaceX started accepting DOGE payments for their commodities, which sparked a sharp but brief price rally.
Moreover, Musk has said that he will not sell his crypto holdings, including DOGE and Bitcoin, during a market crash in March 2022. However, Tesla sold 75% of its Bitcoin holdings three months after Musk announced.
As a general rule, for those seeking advice from this thread, it’s generally better to hold physical things like houses or stocks in companies you think will generate good yields than dollars when inflation is high.
I still own my Bitcoin, Ethereum or Doge fwiw and will not sell.
— Elon Musk (@elonmusk) March 14, 2022
After Musk bought the social media giant, the possibility of adding the DOGE payment option to Twitter was dropped.
In September 2022, Tesla launched Cyberwhistle, a limited-edition collection inspired by its Cybertruck car that users can only purchase with Dogecoin.
So will Dogecoin make a comeback?
Traders are starting to ignore Musk’s venerable connection to Dogecoin, given his half-hearted responses to recent DOGE-related updates.
Instead, traders recently seem to be focused on macro-stimulants, primarily the Federal Reserve’s back-to-back interest rate hikes in 2022 and beyond, which have put pressure on cryptocurrencies, stocks and similar risk assets.
Related: Dogecoin will be the second largest PoW cryptocurrency.
Technical settings are also indicated. For example, on the weekly chart, DOGE/BTC is currently testing 307 satoshis as a temporary support as the level’s historical strong price floor since November 2021.
A critical break below 307 satoshis will test DOGE/BTC’s 200-week exponential moving average (200-week EMA; the blue wave) near 244 satoshis as its lowest target in 2022 DOGE/BTC – 20% down.
It has fallen 40 percent against the dollar.
Since its May 2021 peak, DOGE price has been broadly bearish against the US dollar, now looking at the lower trend line as the next lower target.
The target appears to be in the range defined by $0.048 and $0.036, with the history of these levels providing support. Therefore, the DOGE could depreciate by 40% against the dollar in Q4 2022.
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