Dogecoin fell 75% against Bitcoin since Elon Musk’s appearance on SNL

Dogecoin (DOGE) may be back in the top ten cryptocurrencies by market capitalization, but its losses in terms of USD and Bitcoin (BTC) since Elon Musk’s appearance on SNL are considerable.

Dogecoin loses the Musk effect

The DOGE/BTC trading pair is down 75% after reaching a high of 1,287 satoshis on May 9, 2021, a day after it Musk was a guest host on Saturday Night Live, including a sketch titled “The Dogefather.”

Before his appearance, the billionaire businessman kept tweeting Dogecoin memes, images that helped DOGE—a cryptocurrency that started out as a joke—reach a market cap of over $90 billion in May 2021.

That’s over 36,000% profit in just two years. But things have gone downhill ever since.

Investors reflected hope that even an optimistic nod from Musk on SNL to DOGE would prompt his 106 million followers to buy the meme-token. But Musk did something unpredictable: he called Dogecoin a “fraud.”

One day later, the price of DOGE began to descend from its historical maximum. It continues its downward trend to this day, changing hands for around 300 satoshis against its peak value of 1,287 satoshis.

Simultaneously, the price of Dogecoin has plunged by more than 90% against the US dollar after reaching a high of $0.76 in May 2021.

Elon Musk’s efforts to keep Dogecoin relevant

Musk has made multiple efforts to revive people’s interest in Dogecoin ever since.

In May 2021, revealed which had been working with Dogecoin developers to improve the transaction efficiency of its blockchain since 2019. Plus, Musk’s Tesla and SpaceX too they began to accept payments from DOGE for its merchandise, which caused a strong but short-lived price spike.

On the other hand, Musk declared during a market crash in March 2022 that he would not sell his cryptocurrency holdings, including DOGE and Bitcoin. However, Tesla sold 75% of his Bitcoin holdings three months after Musk’s statement.

As a general principle, for those looking for advice from this thread, it is generally better to own physical things like a home or stock in companies you think make good products, than dollars when inflation is high.

I still own & won’t sell my Bitcoin, Ethereum or Doge fwiw.

— Elon Musk (@elonmusk) March 14, 2022

As a general principle, for those seeking advice in this thread, it’s generally better to own physical things like a house or shares in companies you think make good products than dollars when inflation is high.

I still have and will not sell my Bitcoin, Ethereum or Doge.

The prospect of adding a payment option DOGE to Twitter also tanked after Musk backed out of buying the social media giant.

In September 2022, Tesla He launched Cyberwhistle, a limited edition collectible inspired by his Cybertruck vehicle, which users can purchase only through Dogecoin.

Will Dogecoin recover then?

Traders have begun to ignore Musk’s notorious association with Dogecoin, given his lukewarm reactions to your updates related to DOGE lately.

Instead, It appears that traders have focused more on macro catalysts lately, primarily the Federal Reserve’s back-to-back interest rate hikes that have pushed cryptocurrencies, stocks, and similar risky assets lower in 2022 and beyond.

The technical settings also suggest the same. For example, on the weekly chart, the DOGE/BTC pair is now testing 307 satoshis as its interim support, given the level’s history as a strong price floor since November 2021.

A decisive break below 307 satoshis would see the DOGE/BTC pair test its 200-week EMA (200-week EMA; the blue wave) near 244 satoshis as a downside target in 2022 – a drop of twenty%.

A decline of 40% against the dollar

DOGE price has been trending within a wide descending channel against the US Dollar since it peaked in May 2021, and is now eyeing its lower trendline as the next downside target.

The target appears to be in the range defined by $0.048 and $0.036, given these levels’ history as support. Therefore, the DOGE could fall by approximately 40% against the dollar in the fourth quarter of 2022.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.

Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.