Dogecoin price to test support as Musk doubles down on getting his case thrown out with late Friday repeal

Dogecoin (DOGE) price is tanking after some volatile moves this Monday in the ASIA PAC and European sessions. Traders are grasping to understand the late filing from Musk’s lawyers on Friday that could mean a systemic risk for Dogecoin. T court ruling that recently spoke in favor of the Commodity Futures Trading Commission’s (CFTC) view of cryptocurrencies and altcoins as  commodities. All this puts Dogecoin in the middle of the storm and could see it tanking 20% if the judge rules in favor of Musk.

Dogecoin in eye of storm as Musk puts CFTC win on loose screws

Dogecoin price is taking the blame from several crypto traders and investors as last week’s sigh of relief on the CFTC court win about crypto being seen as a commodity (and thus not falling under Securities & Exchange Commission (SEC) control) could become obsolete. Musk is being sued for $258 billion by a few investors who blame him for pumping Dogecoin. Musk’s lawyers asked for the claim to be thrown out and added in their argumentation that Dogecoin is not a security or commodity, which undermines the recent court ruling in favor of cryptocurrencies falling under the umbrella of the CFTC. 

DOGE is thus at risk of triggering a wave of new lawsuits and still being eligible to be sued by the SEC. Expect DOGE to undergo heavy selling and see bulls squashed against the green ascending trend line. Once that breaks, a full 20% implosion is set to occur with DOGE printing below $0.066.

DOGE/USD  4H-chart    

The overall ruling from last week could still hold more importance and be seen as an overruling against any decision the judge might take in this more local case. If that occurs, expect a sigh of relief. No matter whether Musk wins or loses, as long as Dogecoin and its altcoin friends are deemed a commodity under the CFTC umbrella, all is fine for them. DOGE would quickly spiral higher and hit that $0.086 level for a retest and double top.