Dogecoin price fails to rally as Elon Musk shifts allegiances to ‘Baby Doge Coin’

Dogecoin price is consolidating in a narrow range as investors move to newer meme coins. This range-bound move for DOGE is similar to what other similar cryptocurrencies are experiencing as the hype around them withers away. 

Elon Musk leaves Dogecoin behind

The history between Musk and Dogecoin runs deep. From naming himself the ‘Dogefather,’ talking about it on the SNL, to ‘sending’ Dogecoin to the moon, the fans have loved Elon Musk for his endorsements. 

However, the recent turn of events might have left these supporters dumbfounded as the CEO’s allegiance shifted to a newer and younger version of Dogecoin known as ‘Baby Doge Coin.’

This move by the Dogefather made matters worse for DOGE, as he tweeted

Baby Doge Coin is a younger version of Dogecoin that is not affiliated with the original meme coin. The price of Baby Doge Coin has rallied 4,376% over the past 26 days and has a current market capitalization of $324 million.

This is not the first time Musk has jumped from one meme coin to another. On June 25, Musk mentioned 'Shiba Inu' another Dogecoin spinoff.

For cryptocurrencies like Dogecoin, Shiba Inu or Baby Doge Coin, the social media hype drives its prices. With the general cryptocurrency market in a slump, meme coins' market value is finding it hard to stay above crucial support floors.

Dogecoin price faces decisive moment

Dogecoin price is currently trading between two crucial levels, $0.27 and $0.23. A breakdown of the support barrier at $0.23 will extend the current pullback and might even trigger a downtrend. However, a decisive 4-hour candlestick close above $0.27 and $0.285 could kick-start an uptrend.

Assuming the Dogecoin price bounces off the demand level at $0.23, investors can expect a 10% upswing to the $0.253 swing high set up on July 4. If the buying pressure continues to pour in, DOGE might tag $0.27.

If the bulls slice through $0.27, the logical target would be $0.285, but any move beyond this area is unlikely. Therefore, investors can expect the consolidation phase to extend over the upcoming week.

DOGE/USDT 4-hour chart

Market participants need to steer clear of Dogecoin price due to its consolidation phase. A decisive close above $0.285 or below $0.23 will reveal the direction the meme coin wants to proceed.

In case the support barrier at $0.23 breaks down, DOGE will head to $0.216. If the bearish momentum increases, the demand levels at $0.209 and $0.194 will be tagged.