Dogecoin Crashed 75% Against Bitcoin Since Elon Musk’s SNL Appearance


Dogecoin (DOGE) may be back in the top ten cryptocurrency by market cap, but the losses in both USD and Bitcoin (BTC) terms since Elon Musk’s SNL appearance are significant.

Dogecoin loses Musk effect

The DOGE/BTC trading pair is down 75% after peaking at 1,287 satoshis on May 9, 2021, a day after Musk appeared on Saturday Night Live, including a sketch titled “The Dogefather.”

DOGE/BTC daily price chart. Source: TradingView

Before his appearance, the billionaire entrepreneur relentlessly tweeted Dogecoin memes, images, that helped DOGE — a cryptocurrency that started as a joke — reach a market cap of north of $90 billion by May 2021.

That’s over 36,000% gain in just two years. But it has gone downhill since then.

Investors expressed hope that even an optimistic nod from Musk on SNL to DOGE would prompt his 106 million followers to buy the meme token. But Musk did something unforeseeable: he called Dogecoin a “hustle.”

A day later, DOGE’s price began to fall from its all-time high. It continues its downward trend to this day, switching hands at around 300 satoshis from its peak value of 1,287 satoshis.

At the same time, Dogecoin’s price has fallen more than 90% against the US dollar after peaking at $0.76 in May 2021.

Elon Musk’s Efforts to Keep Dogecoin Relevant

Musk has since made multiple attempts to rekindle people’s interest in Dogecoin.

In May 2021 he has revealed he has been working with Dogecoin developers since 2019 to improve the transaction efficiency of his blockchain. Additionally, Musk’s Tesla and SpaceX also began accepting DOGE payments for their merchandise, leading to a sharp but short-lived price rally.

Additionally, during a market crash in March 2022, Musk stated that he would not sell his crypto holdings, including DOGE and Bitcoin. Nevertheless, three months after Musk’s statement, Tesla sold 75% of its Bitcoin holdings.

The prospect of adding a DOGE payment option to Twitter also collapsed after Musk pulled out of buying the social media giant.

In September 2022, Tesla launched Cyberwhistle, a limited edition collectible inspired by its Cybertruck vehicle, which users can only purchase through Dogecoin.

Will Dogecoin bounce back then?

Traders have begun to ignore Musk’s celebrated association with Dogecoin, given their half-hearted reactions to his DOGE-related updates of late.

Instead, traders seem to have been more focused on macro catalysts of late, primarily the Federal Reserve’s successive rate hikes that have put downward pressure on cryptocurrencies, stocks and similar risky assets into 2022 and beyond.

Related: Dogecoin Becomes Second Largest PoW Cryptocurrency

The technical lineups also suggest the same. For example, on the weekly chart, DOGE/BTC is now testing 307 satoshis as an interim support, given the history of the level as a strong price floor since November 2021.

DOGE/BTC weekly price chart. Source: TradingView

With a decisive break below 307 satoshis, DOGE/BTC would test its 200-week exponential moving average (200-week EMA; the blue wave) near 244 satoshis as a downward target in 2022 – a 20% drop.

A 40% drop against the dollar

DOGE price has been falling in a broad bearish channel against the US dollar since its peak in May 2021, and now sees the lower trendline as the next downward target.

DOGE/USD Weekly Price Chart. Source: TradingView

The target appears to be in the range defined by $0.048 and $0.036 given the history of these levels as support. Therefore, DOGE could fall by about 40% against the dollar in the fourth quarter of 2022.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of TBEN.com. Every investment and trading move carries risks, you should do your own research when making a decision.





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