Dogecoin price has experienced a significant correction following the downward trend of the market after a strong performance in November. The meme-based cryptocurrency has been swaying along with other major cryptocurrencies such as bitcoin, indicating high market sentiment. However, with multiple factors pushing the price down, the question remains as to where Dogecoin’s price might fall if Elon Musk, a staunch supporter of DOGE, withdraws support.
Elon Musk’s interest could have a huge impact on Dogecoin, especially among investors who value the symbol and its influencer support. The push to get regulatory approval for X Payments, the financial platform founded by Musk, has hit a number of hurdles. Despite its intense efforts, it has yet to receive regulatory approval from every state in the US, which could delay its launch.
If it is eventually approved, there is little chance that Dogecoin will be chosen as the primary payment currency. The latest market analysis suggests a sharp decline of between 39-58%, surging from the price of $0.124 to $0.219. However, if the important support levels at $0.076 and $0.058 cannot be maintained, the cryptocurrency could reach a low of $0.0101, as the risk increases as support weakens and market pressure increases.
Over the past trading session, DOGE price has been experiencing a sharp decline, falling by over 12.5% over the past 24 hours. The price fell below a key support level at $0.35 to reach a low of $0.308. The relative strength index (RSI) on the 4-hour chart shows a reading of 17.88, indicating that the asset is oversold. Such a low RSI level indicates a possible reversal or a stop of the downtrend as buyers could step in to take advantage of the lower prices.
Dogecoin price forecast could drop below the $0.30 support level. If this scenario happens, the price could drop to test the $0.27 level. However, if buying pressure returns, Dogecoin could surge to $0.35, providing some relief to shareholders.
Dogecoin’s future depends on market sentiment and Elon Musk’s influence. If Musk backs down, DOGE could face a sharp decline, testing a key support level as it navigates fickle investor sentiment.
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