Dogecoin is in desperate need of a few words from Elon Musk

Dogecoin price hits a bearish cap hard and falls.
DOGE price is set to tank further and break below last week's low.
Expect a further decline if Elon Musk does not come to the rescue.

Filip Lagaart FXStreet

Dogecoin (DOGE) price action is set to drop and make new lows on a weekly, monthly and yearly basis if some support does not come quickly from its backer Elon Musk. Since the Dubai Economic Forum, where Musk talked about Twitter and remained silent on any cryptocurrency topic, it has been very quiet around the person. Dogecoin price looks set to collapse further on the back of that as big names in crypto are turning their back on Dogecoin.

DOGE price is facing another 40% correction

Dogecoin price has long been one of the favorite cryptocurrencies from Elon Musk, next to Bitcoin. Remembering the special SaturdayNight Live episode starring the billionaire tilted Dogecoin to staggering heights. But the last few weeks, Musk has been utterly silent on anything that has to do with cryptocurrencies.

DOGE price thus lacks the stardust that Musk usually provided and could be at risk of a further collapse as long as he remains silent. Expect a break below last week's low, around $0.0588. From there, the price could quickly repel to $0.050, which coincides with the new monthly S1 support pivot and is just 1 cent of the $0.0409 historic pivotal level.

DOGE/USD weekly chart

As bulls have already launched an attempt to break the 55-day SMA price cap, the next attempt could be the right one to break the backbone of the downtrend. To do so, bulls will need to prevent price action break below the low of last week. By that, momentum can be kept, and bulls can build further on that trend to execute a bullish breakout towards $0.010.