Has Dogecoin Become Resistance Against Elon Musk’s Shilling?

dogecoin elon musk

Dogecoin had grown primarily due to billionaire Elon Musk’s shillings. Last year around this time, the meme coin flourished in all its glory as tweet after tweet from the ‘Dogefather’ brought investors in droves to the project. Since then, the hype surrounding the project has faded as the price has lost more than 80% of its all-time high. What’s more, the meme coin now seems to have developed resistance to the billionaire’s shillings.

Dogecoin says no to Elon

In the early hours of Friday, Elon Musk had tweeted again in support of Dogecoin. This arose from a tweet in which Musk himself had said that using the word “billionaire” should not be pejorative, as it is “morally wrong and stupid.” A response from another tweeted user had suggested that the word “trillionaire” was better than using billionaire after all, to which Musk replied, “Dogecoin Trillionaire, the movie.”

Now, a tweet like this from Musk would have pumped the price of Dogecoin above comprehension six to eight months ago. This would turn out not to be the case this time around because while there was a small movement in the price of the digital asset, it was not significant in any way. This has sparked speculation in the space as to whether the billionaire has indeed lost influence over the price of the meme coin.

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At the time of writing, the tweet is a few hours old. Looking at the Dogecoin chart, we see that there was hardly any movement in the price of the meme coin at the time the tweet went live and in the hours after. This leads to the conclusion that investors are no longer hanging on to every word from the billionaire when it comes to DOGE. Instead, the price of the digital asset has continued to move around the $0.077 area.

DOGE trending at $0.0779 | Source: DOGEUSD on TradingView.com

Why DOGE didn’t move

In the crypto space, it is well known that hype makes a difference in the value of a digital asset. But what if that digital asset, along with the rest of the cryptocurrencies on the market, has gone through a long-term bear trend?

This has been the case with Dogecoin for the past few months. The meme coin is still moving significantly below the 100 and 200 day moving average. What this means for the digital asset is that it is a seller’s market in both the short and long term. This way the bears are in control.

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The meme coin is also in a prolonged state of consolidation. Unlike times when consolidation usually ends with recovery, DOGE shows no such signs. Accumulation is almost non-existent, which continues to contribute to the price decline. Without a steady accumulation trend, Dogecoin has little chance of breaking out of this consolidation in the near term.

DOGE is trading at $0.0775 at the time of writing. It still remains the 10th largest cryptocurrency in the space with a market cap of $10.34 billion.

Featured image of The Dial, chart from TradingView.com

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