The Dogecoin Elon Musk Connection Is Falling Flat—Why the Memecoin Isn’t Moving Read CoinChapter.com on Google News
NOIDA (CoinChapter.com)— Dogecoin, the meme-inspired cryptocurrency, has seen its price action stagnate in recent months, trading around $0.06 to $0.08, far from its all-time high. The sluggish performance comes despite occasional Dogecoin tweets from Elon Musk, who was once a major catalyst for DOGE’s explosive growth.
Musk’s historic relationship with Dogecoin began as a joke but quickly became a significant market-moving force.
His tweets, such as “Doge is the people’s crypto,” propelled the coin to new heights. However, in 2023 and 2024, his social media endorsements have failed to generate the same frenzied buying activity.
Why Musk’s Influence Has Waned
Several factors contribute to the diminishing impact of Elon Musk’s tweets on Dogecoin’s price. First, the cryptocurrency market has matured. Early speculative enthusiasm has given way to more sophisticated trading strategies, reducing the market’s susceptibility to hype-driven price movements.
Investors now rely more on technical analysis, macroeconomic trends, and fundamental factors than on celebrity endorsements.
Elon Musk’s recent tweet about DOGE had a ‘meh’ reaction from the memecoin.
Of course, there are exceptions, such as traders who are new entrants or deluded hopium addicts, but their impact on the wider market is becoming less significant.
Musk’s prolific tweeting about Dogecoin has led to market desensitization. When every mention of DOGE by Musk prompted a rally, traders eagerly awaited his posts. However, repeated endorsements have diluted their impact. The market has grown accustomed to his support, and the surprise factor is gone.
Musk also admitted that his initial interest in Dogecoin stemmed from his employees’ enthusiasm, not deep-seated belief in its potential. This admission may have contributed to the market’s reassessment of his endorsements, viewing them as less credible.
Finally, Dogecoin’s price action has become increasingly tied to broader market conditions rather than individual tweets. The cryptocurrency faces the same headwinds as the rest of the market, including regulatory challenges and macroeconomic pressures, further diminishing Musk’s influence.
DOGE Price Faces Crucial Resistance
Dogecoin (DOGE) is currently in a precarious position as it tests the 50% Fibonacci retracement level at $0.117 after attempting to recover from a period of significant selling pressure. The downtrend has been consistent, marked by a descending trendline that continues to exert resistance.
Given Dogecoin’s recent aversion to Elon Musk tweets-fueled bull runs, the DOGE USD pair had little motivation to break above the trendline resistance.
It aligns with the 61.8% Fibonacci retracement level around $0.1210. The failure to break through the trendline resistance or sustain a move above the 200-day EMA, hovering around the $0.1214 mark, reinforces the bearish outlook.
This convergence of resistances makes it challenging for DOGE to stage a meaningful recovery unless it can muster substantial buying pressure.
DOGEUSD daily price chart with RSI. Source: Tradingview
The MACD indicator below the chart shows a crossover into positive territory but with minimal momentum, suggesting that the recent uptick in price lacks strong conviction. The fading histogram bars highlight this weakness, indicating that the bullish attempt might be losing steam.
If DOGE fails to sustain above the $0.111 level, the next key support lies at the 38.2% Fibonacci retracement level near $0.106, followed by the 23.6% retracement at $0.0971. A drop below these levels could open the door for further declines, potentially revisiting lows around $0.090.
Hence, Dogecoin must break above the descending trendline and the 61.8% Fibonacci level to signal any real strength. Until then, the risk remains tilted to the downside, with support levels offering only temporary relief if the broader market sentiment doesn’t shift.
Meanwhile, it remains to be seen if any effort from Elon Musk would help Dogecoin price conquer the resistance it is facing.
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