Like most cryptocurrencies in the market, Dogecoin is currently experiencing a severe price correction that threatens to delete its recent gains. Even as Tesla considers adopting the virtual asset, Dogecoin has been on a consistent downward trend today, plunging towards the $0.37 mark. If the crypto plunges to this price value, it would be the lowest since the 1st of May.
Dogecoin price movement appears to be influenced by Tesla CEO Elon Musk. During the much anticipated Saturday Night Live event graced by Elon, the crypto asset recorded impressive past the $0.7 price region. However, it is emerging that not all his actions positively affect the dog-themed crypto asset. Shortly after his appearance, investors decided to sell their holdings, sparking a massive sell-off. At present, the Doge community calls upon Elon to accept Dogecoin as a replacement for Bitcoin, following the company’s decision to ditch the number one crypto asset.
At the time of writing, Dogecoin remains to be the 5th largest crypto coin in the world with a market cap of about $54 billion, according to CoinMarketCap.com. With that said, 2 of the leading news influencing Dogecoin’s price movement is that of Tesla’s decision to cease using Bitcoin as a mode of transaction and Elon Musk’s sentiments during the Saturday Night Live event.
On Tesla’s decision to stop using Bitcoin on its network, the company claimed the coin is not eco-friendly due to its dependency on fossil fuels in its mining. According to Tesla, Bitcoin does not align with the company’s mission of being energy efficient and eco-friendly. It appears this news hurt the number one crypto asset as it has lost more than $8,000 in value. As a result, the entire crypto market feels these effects and is experiencing a severe price retraction.
The 2nd news affecting Dogecoin is Elon’s comments during the Saturday Night Live event. Despite his speech being long-awaited, Elon decided to approach Dogecoin from a comedic standpoint. In his closing remarks, he referred to Dogecoin as a hustle prompting massive sell-offs. Maybe as a way to undo his mistake, the serial businessman took to his Twitter handle earlier today to conduct a poll on whether his company, Tesla, should start accepting Dogecoin. At the time of writing, more than 3 million people pushed for the acceptance of the coin by voting for it.
According to Dogecoin’s 24-hour price movement, it is clear the crypto coin is currently experiencing a massive selling spree that is pushing its value past crucial support levels. At the time of writing, the crypto is exchanging hands at around $0.39, a level that is about 45 percent lower than its last week’s highest point. This is below the coin’s 25 and 50-day exponential moving averages, indicating Dogecoin is deep into a bearish leg. Additionally, the current price value happens to be below the ascending channel’s lower trend line.
According to Dogecoin’s 4-hour chart, it appears the crypto coin’s price activity is bearish due to the formation of a head and shoulder pattern. The pattern seems to be forming on top of a double-top channel that developed a few days ago. This means Dogecoin’s price might continue retracting in the short term, with the following support line being at $0.3.
It is impossible to rule out Dogecoin as a relief price surge is possible given the crypto coin’s dynamics. In the event Tesla adopts the crypto coin, investors should expect a sudden price surge.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
This post was last modified on May 13, 2021 11:12 pm
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