Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency discussions => Topic started by: rose berry on April 07, 2023, 12:13:38 PM
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Dogecoin (DOGE) investors were left reeling as the price of the meme cryptocurrency experienced a massive plunge of nearly 8%. The price dropped from the interim high of around $0.09 and is currently trading around $0.084. The reason behind the drop is the same as the one that led the price to rise so high a couple of days before.
Tesla and Twitter CEO, Elon Musk, who has been an ardent supporter of Dogecoin, recently changed the Twitter logo from the bluebird to DOGE. This move led to a lot of speculation and interpretation, propelling the price by more than 20%. However, the upswing failed to reach highs above $0.1, as the bears restricted the price to $0.092.
In a recent update, Musk removed the DOGE logo and restored the original logo, causing a wave of fear, uncertainty, and doubt (FUD) among the market participants. This led to massive selling pressure and a descending trend that may further drag the price lower to its initial levels very soon.
The DOGE price had maintained a silent trend along the lower trend line until the logo was replaced, which shot up the price to reach the upper resistance in no time. However, the price, which had already begun to consolidate, dropped heavily as the original logo was restored.
Presently, the price is testing one of the interim supports at 50-day MA levels in the short term, which may not hold tightly.
The RSI is heading towards oversold levels, while the strength of the rally calculated by the ADX is also plunging down. This may drive the price lower to reach the support levels, which reside along the lower trend line of the rising wedge pattern.
In light of this recent development, the bearish cartel may not remain aloof from the Dogecoin (DOGE) price, and investors need to thoroughly look out for short-term swings, which are largely impacted by external factors. The future of DOGE remains uncertain as the market tries to adjust to this new reality.
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Elon won the need for fuel for the rocket with this action :)