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Elon Musk believes Dogecoin could be a currency, DOGE prepares for recovery

  • Elon Musk, CEO of Tesla and Dogecoin proponent, believes DOGE has potential as a currency. 
  • Dogecoin price is on track to recover, and the meme coin has posted nearly 4% gains overnight. 
  • Analysts believe DOGE could recover from its slump, but bears reached exhaustion. 

Elon Musk commented on the Dogecoin co-founder’s tweet. Musk believes DOGE could be a currency and fuels a bullish sentiment among investors. 

DOGE is on track to begin recovery soon

Tesla CEO Elon Musk recently made a bullish remark on Dogecoin despite the market-wide bloodbath. Musk affirmed that DOGE has potential as a currency in response to Billy Markus, co-founder of Dogecoin’s tweet. 

Musk likes the meme cryptocurrency and remains bullish on it. The billionaire CEO of Tesla has identified potential in DOGE and believes that the meme coin has the properties of a currency. The tweet has received a positive response from the DOGE community, and Dogecoin proponents are bullish on the meme coin. 

The recent crypto market bloodbath had a negative impact on most cryptocurrencies, including Shiba-Inu-themed cryptocurrencies DOGE and SHIB. Dogecoin has struggled to recover from the correction. However, analysts have identified signs of bearish exhaustion in Dogecoin. 

The Dogecoin price could likely wipe out recent losses and make a complete recovery. DOGE has posted nearly 4% gains overnight, and meme coin is on its path to making a comeback. 

Another key factor driving a bullish sentiment in the community is the high volume of DOGE held by whales and investors across exchanges. Robinhood holds 30.97% of the meme coin’s circulating supply on behalf of its investors. 

Analysts believe Dogecoin’s downtrend has hit its peak, and bears are exhausted. FXStreet analysts believe DOGE has had a chance to recover; however, the asset could retest support, extending from $0.078 to $0.087. If the bloodbath continues, DOGE could plummet instead of beginning recovery. 

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

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