Dogecoin crashes 75% against Bitcoin since Elon Musk’s SNL appearance

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Dogecoin (DOGE) may be back in the top 10 cryptocurrencies by market cap, but its losses in USD and Bitcoin (BTC) since Elon Musk’s SNL appearance are sizable.

Dogecoin loses musk effect

The DOGE/BTC trading pair fell 75% after peaking at 1,287 satoshis on May 9, 2021, a day after Musk guest-hosted Saturday Night Live, including a skit titled “The Dogefather.”

Daily DOGE/BTC price chart. Source: Trading View

Prior to his appearance, the billionaire entrepreneur relentlessly tweeted Dogecoin memes, images, which helped DOGE – a cryptocurrency that started out as a joke – reach a market capitalization north of $90 billion in May 2021.

That’s more than 36,000% gains in just two years. But things have since deteriorated.

Investors expressed hope that even an optimistic nod from Musk on SNL to DOGE would entice his 106 million subscribers to buy the meme-token. But Musk did an unpredictable thing: he called Dogecoin a “hustle.”

A day later, DOGE price started its decline from its all-time high. It continues its downward trend to date, changing hands for around 300 satoshis against its peak value of 1,287 satoshis.

Simultaneously, the price of Dogecoin crashed over 90% against the US dollar after peaking at $0.76 in May 2021.

Elon Musk’s Efforts to Keep Dogecoin Relevant

Since then, Musk has made many efforts to revive people’s interest in Dogecoin.

In May 2021, he revealed he had been working with the developers of Dogecoin to improve his blockchain’s transaction efficiency since 2019. Additionally, Musk’s Tesla and SpaceX also started accepting DOGE payments for their goods, causing prices to rise sharply but dramatically. short duration.

Additionally, Musk said during a stock market crash in March 2022 that he would not sell off his crypto holdings, including DOGE and Bitcoin. Nonetheless, Tesla sold 75% of its Bitcoin holdings three months after Musk’s statement.

The prospect of adding a DOGE payment option to Twitter also fell apart after Musk backed out of buying the social media giant.

In September 2022, Tesla launched Cyberwhistle, a limited-edition collectible inspired by its Cybertruck vehicle, which users can only purchase through Dogecoin.

Will Dogecoin bounce back then?

Traders have started ignoring Musk’s famous association with Dogecoin, given their mixed reactions to his DOGE-related updates lately.

Instead, it appears traders have been more focused on macro catalysts lately, primarily the Federal Reserve’s back-to-back interest rate hikes that have put downward pressure on cryptocurrencies, equities and similar risk assets in 2022 and beyond.

Related: Dogecoin Becomes Second Largest PoW Cryptocurrency

Technical setups also suggest the same. For example, on the weekly chart, DOGE/BTC is now testing 307 satoshis as interim support, given the level’s history as a solid price floor since November 2021.

Weekly DOGE/BTC price chart. Source: Trading View

A decisive break below 307 satoshis would force DOGE/BTC to test its 200-week exponential moving average (200-week EMA; the blue wave) near 244 satoshis as its downside target in 2022 – a drop of 20%.

A 40% drop against the dollar

DOGE price has been trending inside a broad descending channel against the US Dollar since peaking in May 2021, now viewing its lower trendline as the next downside target.

DOGE/USD weekly price chart. Source: Trading View

The target appears to be within the range defined by $0.048 and $0.036, given the history of these levels as support. Consequently, the DOGE could fall by around 40% against the dollar in the fourth quarter of 2022.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.



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