Dogecoin has fallen 75% against Bitcoin since Elon Musk’s SNL appearance

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.

DOGE/BTC Daily Price Chart. Source: TradingView

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.

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.

DOGE/BTC weekly price chart. Source: TradingView

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.

DOGE/USD weekly price chart. Source: TradingView

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.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Every investment and business activity involves risk, you should do your own research when making a decision.