As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed countless cycles of growth and correction, bullish trends followed by bearish downturns, and the rise and fall of various assets. With that said, the current situation surrounding Dogecoin (DOGE) presents an interesting case study.
The price of Dogecoin has experienced a substantial decrease due to bearish trends that have emerged since its impressive November run. Known for its meme-based origins, this digital currency had risen in tandem with leading cryptocurrencies such as Bitcoin, demonstrating robust market interest. Lately, the market conditions seem to be turning sour, causing worry among investors. With Elon Musk being a significant supporter of Dogecoin, there is speculation about what would happen if he decides to withdraw his backing. This uncertainty leaves many wondering just how far Dogecoin’s price could fall.
How Low Can Dogecoin Price Drop if Elon Musk Stops DOGE Support
The price of Dogecoin might experience substantial fluctuations if Elon Musk decides to decrease his backing for the humorous digital currency. Musk’s endeavor to get official endorsement for X Payments, a potential financial service tied to his X platform, has run into obstacles. Despite his diligent attempts, he hasn’t obtained complete regulatory approval across all U.S. states yet, which may postpone its launch.
Even if approved, the likelihood of Dogecoin being selected as the primary payment currency remains low due to its inflationary nature. Current market charts suggest an initial drop of 40%-60%, pushing the price between $0.123 and $0.22. However, if critical support levels at $0.077 and $0.057 fail, the meme coin could plummet by 82%, reaching as low as $0.0098. Such a decline would reflect the cryptocurrency’s inherent risks amid diminishing support and increasing market pressures.
DOGE Technical Analysis
Over the past few trading periods, Dogecoin (DOGE) has seen a substantial decrease, losing more than 13% of its worth in just the last day. This decline has brought the price below a crucial support point at approximately $0.35, reaching a minimum of $0.30.
On the 4-hour chart, the Relative Strength Index (RSI) stands at 17.67, which typically means the asset is extremely oversold. Low RSI values like this usually signal a possible price reversal or a brief respite in the downward trend, as investors might be tempted to buy when prices are relatively low.
Given the ongoing bearish trend, it’s possible that the Dogecoin price will drop below its current support at around $0.30. If this happens, the price might continue falling to hit approximately $0.25. But if bullish sentiment returns, Dogecoin could potentially recover and move back up towards $0.35, providing some respite for its investors.
The fate of Dogecoin relies heavily on general market mood and the impact of Elon Musk. If Musk decides to withdraw his influence, Dogecoin might experience significant drops, challenging crucial support levels as it moves through a period of unstable investor trust.
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2024-12-19 23:25