Once Elon Musk's support for Dogecoin weakens, the price of Dogecoin is likely to fluctuate sharply.
Musk has been pushing for regulatory approval for X Payments, a financial platform that is interconnected with his X platform, but the process has not been smooth and has encountered many obstacles.
Despite Musk's efforts, he has yet to obtain full regulatory approval from all U.S. states, a situation that is likely to delay the platform's release.
Even if it is successfully approved in the future, given Dogecoin's own inflationary characteristics, the probability of it being selected as the main payment currency is still at a low level.
Analyzing from the current market chart, a 40% - 60% drop is initially expected, at which time the price will be in the range of $0.123 to $0.22.
But if the two key support levels of $0.077 and $0.057 are difficult to hold and are broken by the market, the price of Dogecoin may plummet by as much as 82%, and may even fall to as low as $0.0098.
Under the dual unfavorable situation of reduced support and continued rising market pressure, such a downward trend will fully expose the inherent risk characteristics of cryptocurrencies. The market outlook is not optimistic and investors need to remain highly vigilant.
The price of DOGE has suffered a significant decline in the recent trading period, with a drop of more than 13% in the past 24 hours.
The price managed to break the critical support level of $0.35 and dropped all the way to a low of $0.30.
Looking at the Relative Strength Index (RSI) presented on the 4-hour chart, its reading is 17.67, which clearly shows that the asset is in a severely oversold condition.
Such low RSI levels often indicate that the downward trend may be reversing or temporarily pausing. After all, in this case, buyers are likely to enter the market to take advantage of this price discount.
