• Elon Musk, billionaire investor revealed that Shiba-Inu-themed cryptocurrency Dogecoin can be used to buy merchandise on both Tesla and SpaceX. 
  • Despite the catalyst, analysts believe the Dogecoin price could fail to recover from its recent slump and identify $0.0637 as the short-term target. 
  • Analysts identify signs of capital rotation in Dogecoin, and believe recovery in Dogecoin is less likely.

Elon Musk’s recent tweet about accepting Dogecoin payments at SpaceX failed to trigger a rally in the Shiba-Inu-themed meme coin. Proponents believe DOGE could struggle to recover from its downtrend in 2022. 

Dogecoin fails to make come back

Elon Musk, the billionaire founder and CEO of Tesla and SpaceX, who is popular by his self-proclaimed title of “Doge Father,” made a new announcement about Dogecoin. Musk informed the community that Dogecoin payments will now be accepted in exchange for merchandize on both Tesla and SpaceX. 

Users would make Dogecoin payments through their wallet and purchase merchandise across these platforms. The billionaire CEO of SpaceX has made his choice of Dogecoin as payment clear, opening up the gates across shops in his projects. 

@Mangyek0, leading cryptocurrency analyst at FXStreet, argues that capital rotation is ongoing in the crypto ecosystem. The analyst argues that investors’ mindset towards Dogecoin has changed. 

Poor adoption of Dogecoin across global businesses

Analysts argued that new announcements and a boost in utility of Dogecoin could push the meme coin’s price higher. However, bullish drivers have failed to trigger a rally in the meme coin’s price. 

A key factor in bearish sentiment on the meme coin is poor adoption by businesses. Motley Fool, a financial advice firm, recently revealed that 1300 business across the globe accept DOGE. 

While 36% of the United States’ small businesses accept Bitcoin, Dogecoin is struggling with a boost in its adoption. The hype built around Dogecoin adoption has sustained to drive a price rally in DOGE. 

Michelle Jongbloets, a crypto YouTuber and analyst, evaluated the Dogecoin price chart and noted that the DOGE price is retracing. The analyst argues that it is alarming to see a 20-day moving average and 50 day moving average closing in. Dogecoin price is currently well above the two moving averages, however, a crossover could confirm a bearish phase in DOGE. 

DOGE USD chart

DOGEUSD chart

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Solana price hints at a 50% upswing under these specific conditions

Solana price hints at a 50% upswing under these specific conditions

Solana price shows an interesting setup as it tries to overcome a stiff resistance level. The fifth attempt to overcome hurdles will likely be successful due to multiple bullish confluences. Solana price has been on a clear uptrend since producing the June 14 swing low at $25.76.

More Solana news

Dogecoin price to provide a buying opportunity before exploding 35%

Dogecoin price to provide a buying opportunity before exploding 35%

Dogecoin price sees a slow decline in bullish momentum as a major hurdle puts an end to its explosive move. A pullback is emerging for DOGE and is likely an opportunity that will allow bulls to recuperate and prepare for the next rally.

More Dogecoin news

Former Goldman Sachs banker explains why Wall Street gets Bitcoin wrong

Former Goldman Sachs banker explains why Wall Street gets Bitcoin wrong

According to John Haar, who used to count himself within the ranks of the traditional finance field, a fundamental understanding of "sound money" is preventing Wall Street from embracing Bitcoin. Haar’s views were expressed in an essay on Aug. 14.

More Bitcoin news

Avalanche Price Prediction: A sharp decline in the making?

Avalanche Price Prediction: A sharp decline in the making?

Avalanche price shows a potential sell-off underway, and key levels have been identified. Avalanche price could be depicting early evidence of liquidation underway as the technicals show subtle bearish cues. AVAX price has rallied 90% since July 1st, printing a new monthly high.

More Avalanche News

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin price shows an interesting setup that could reveal its next move. On closer inspection,  its technicals support a bearish outlook for the leading crypto.  

Read full analysis

BTC

ETH

XRP