The price of Dogecoin (DOGE) continued its downward trend on Wednesday as investors reacted to Tesla’s stock market crash. DOGE price fell to $0.07, its lowest level since October 26 of this year.
As recently as November, the coin was trading above $0.15, since then its price has fallen by more than 55%. The market cap of Dogecoin is now $9.45 billion.
Does DOGE expect the fate of Tesla Stock?
Dogecoin is the most famous meme coin in the world. It gained popularity after Tesla and SpaceX CEO Elon Musk mentioned this cryptocurrency several times on Twitter and talked about it in his interviews. Many people listened to him because it was during this time that Musk became the richest person in the world.
Elon Musk has an undetermined amount of Dogecoins and has expressed his desire to support developers behind the scenes. However, things have gone downhill for the billionaire lately. According to Bloomberg data, his net worth has shrunk by more than $140 billion. In the meantime, he is no longer the richest person, but only number 2 after Frenchman Bernand Arnault. Musk will likely soon be overtaken by Indian entrepreneur Gautam Adani.
The reason for the massive losses was the fall in Tesla stock prices. This year, its price has fallen by more than 74% – more than most cryptocurrencies, including Dogecoin. Tesla’s stock price fell as investors worried about the company’s future. Competition in the electric car market is intensifying.
The stock also fell due to Elon Musk’s recent takeover of Twitter. At the time, some analysts believed the acquisition would have a positive impact on DOGE’s stock. However, the case was extremely turbulent. Twitter lost a number of advertisers after Musk laid off thousands of employees. And at the moment, it seems highly unlikely that Dogecoin will fit into the Twitter ecosystem.
However, it is likely that Musk will start selling his Dogecoins. While it’s unclear how much he actually owns, Twitter’s new CEO is in dire need of cash. He was forced to borrow billions of dollars this year to fund the acquisition of Twitter. Twitter itself is heavily indebted, and Musk recently sold around $3.5 billion worth of Tesla stock, possibly to pay off some of the debt.
Dogecoin Price Prediction
The price chart shows that the DOGE price has been in a strong downtrend for the past few months. Meanwhile, the 50-day and 100-day moving average lines are about to form a bearish crossover pattern. The price also broke below the key resistance at $0.089, peaking on August 17th.
The current price of around $0.07 is significant because it was also the lowest point on November 10 and 21. Therefore, a drop below this level is a bearish sign. If so, the next level to watch is $0.056, which is around 20% below the current DOGE price.
On this page we explain how to buy or short sell Dogecoin.