Dogecoin Price Prediction: Continued Falling Because Of Elon Musk

Key Points:

• The Dogecoin protest ended after the logo of the meme coin was removed from Twitter’s homepage.
• With the current price range, holding DOGE is not necessary.
• The price range of $0.07-$0.74 will be an opportunity to buy DOGE if the market has a signal.

Dogecoin (DOGE) prices have continued to decline after spiking earlier this week after Elon Musk’s Twitter changed its homepage logo to pay respect to the humor cryptocurrency.

Dogecoin’s celebration seems to be ended, as the DOGE price has dropped by more than 9%. DOGE is now trading at $0.0825 with a market valuation of $11.5 billion as of press time.

There are indications that a deeper adjustment is required. The reason for the massive drop is the same as the one that caused the price to skyrocket a few days ago. However, if there is a bullish assumption, then the potential zone would be $0.07-$0.074.

Elon Musk, the CEO of Tesla and Twitter, who publicly advocates Dogecoin, recently altered the Twitter logo from the bluebird to DOGE. Elon Musk, as we all know, is a big fan of Dogecoin. He explained his decision by saying that the modification in the emblem was just to honor a promise made in an earlier exchange with a Twitter user.

This fueled a lot of conjecture and interpretation, causing the price to rise by more than 20%. The rally, however, was unable to break beyond the $0.11 barrier.

The logo was deleted in a recent update, and the old logo was reinstated. This caused widespread panic among market players, who started to liquidate, putting huge selling pressure on the market. The declining trend may eventually take the price back to its starting levels.

As miners start selling their block rewards, the market supply of currencies grows. Dogecoin miners control almost 3.3% of the entire DOGE supply, therefore, their sell pressure may have a substantial influence on the price.

The dogecoin community has great expectations that Elon Musk will adopt DOGE, the official currency of Twitter, in the future. Nevertheless, it may also mean inviting regulatory attention, and no one knows how Musk will carry this out.

Dogecoin’s high open interest and skewed financing rate indicate that the market is unbalanced, implying that a correction might be dramatic if prices continue to move against optimistic traders.

Traders often take these positions using margin or borrowed funds and may be forced out of them by brokers if the market swings against them, a process known as liquidation. The forcible closure of holdings may also result in automatic sell orders, providing more downward pressure to an already falling market.

DOGE social volumes increased considerably as the price increased by more than 30% in a single day. Popular cryptocurrency researcher Ali Martinez had previously warned of a probable pullback two days ago.

With the current trend, holding DOGE is not necessary, currently, Bitcoin is still trading in a sideways trend, so the money flow into altcoins is not really much. However, seeing the excitement of the community at some point is also very interesting if holding DOGE.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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