Will Elon Musk Back Dogecoin Again? DOGE Price Could Soar If This Happens

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On Friday, the price of Dogecoin settled at approximately $0.33, halting a four-day market slump that resulted in a 15% drop. At present, the market is finding it challenging to regain momentum. However, there’s a possibility that Elon Musk could soon rekindle his support for Dogecoin under specific circumstances.

Elon Musk Ready to Back Dogecoin price Again? What Needs to Happen

2021 saw Elon Musk expressing his readiness to support a rise in Dogecoin’s value, provided that significant investors would reduce their holdings to address an imbalance in wealth distribution.

The goal behind the call was to promote a fairer sharing of Dogecoin amongst its owners. While Musk’s announcement initially sparked excitement, current patterns indicate that uneven wealth distribution remains a considerable problem within the Dogecoin user base.

Should significant Dogecoin investors decide to offload a large portion of their holdings, I would wholeheartedly endorse this action. In my opinion, excessive concentration is the primary concern.

— Elon Musk (@elonmusk) February 14, 2021

The Gini index, a statistical tool for evaluating distribution and measuring inequality, has been on an upward trend. This suggests that the wealth held by Dogecoin owners is becoming more and more centralized.

In December 2021, the coefficient was measured at 0.987 and has since moved even closer to a complete inequality score of 1, now standing at 0.995 in recent evaluations. This increase indicates that while general market trends may be shifting, the gap between rich and poor Dogecoin investors appears to be growing more pronounced.

An examination of Dogecoin wallets shows that people holding between 1,000 and 1,000,000 coins have diverse trading habits. Interestingly, wallets with tens of millions of DOGE have a pattern of buying more when the market drops and selling when it rises. This approach suggests a continuous accumulation tendency among the wealthiest holders, which conflicts with Dogecoin’s goal of fostering decentralization.

Will Dogecoin Price Revist ATH?

In November, the popularity of the meme coin significantly increased, largely due to Elon Musk’s growing impact and active participation in the Dogecoin project. His involvement has fueled a new wave of hope that Dogecoin will be able to break through major obstacles.

Currently, when I’m writing this, the price of DOGE stands at approximately $0.33604, showing a minor rise of 0.9%. The Relative Strength Index (RSI) is at 46 right now, suggesting that Dogecoin is neither excessively bought nor sold, implying a neutral market outlook.

As the estimated Dogecoin value nears the $0.35 threshold, traders may seek indications of continuous strength. Should it surpass this point, a potential challenge to stronger resistance around the $0.50 region might soon occur.

If bulls exert greater influence, the Dogecoin price may return to its All-Time High (ATH) achieved during the 2021 bull run, potentially increasing by over 54%. On the other hand, if it falls below current support levels, it could retreat to regions around $0.28.

To sum up, the stability of Dogecoin and potential backing from Elon Musk could be achieved if there’s a decrease in the dominance held by large-scale owners. Should this change materialize, Dogecoin may recapture investor excitement and potentially reach its previous high price levels once more.

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2025-01-10 13:12