Why Elon Musk’s tweet failed to move Dogecoin price
- Dogecoin price continues to produce lower lows on a four-hour time frame.
- As DOGE approaches the $0.073 support floor, investors can expect a decent bounce to $0.087.
- However, a breakdown of the $0.073 barrier could lead to a 14% descent to $0.062.
Dogecoin price slipped up as Bitcoin price triggered a sudden crash on May 26. This downswing, while serving as a great opportunity to accumulate DOGE, failed to recover alongside BTC.
However, denoting the capital rotation away from altcoins, including Dogecoin, is the recent tweet from the Tesla CEO Elon Musk. Often, tweets from Musk including DOGE has caused the price to rally, but despite the recent mention, the dog-themed crypto seems to have remained unaffected.
Dogecoin Trillionaire, the Movie
— Elon Musk (@elonmusk) May 26, 2022
This lack of interest from investors indicates that investors are speculating on relatively stable assets like Bitcoin than extremely volatile assets like Dogecoin.
Dogecoin price and its mysteries
Dogecoin price is undergoing a tight consolidation that is slowly favoring the sellers. The UST depeg-led crash pummeled DOGE to set a swing low at $0.065 on May 12. Although DOGE recovered 44% and set a swing high at $0.096 on May 13, it has been forming lower highs since.
On May 26, Dogecoin price crashed 9.6% and tried recovering these losses as Bitcoin rallied. However, DOGE seems to have run out of fuel as the bounce failed to manifest. This lack of buying pressure could indicate that investors have pulled the capital for risky altcoins.
The only place for this capital to flow is into stablecoins or relatively stable assets like Bitcoin or Ethereum. Hence, investors need to be careful when trading altcoins. As for DOGE, the intermediate support level at $0.073 seem to be here to defend against the downswing. A bounce off this barrier could propel Dogecoin price back to the $0.087 hurdle.
DOGE/USDT 4-hour chart
On the other hand, if Dogecoin price breaks down the $0.073 barrier, it will denote that the sellers are in control and knock the altcoin down to $0.062.
Here, buyers have a chance to regroup and come back. However, a four-hour candlestick close below this level will invalidate the bullish thesis for Dogecoin price. This development could further push the dog-themed crypto to the $0.046.support floor.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
