Dogecoin price has seen a significant correction amid bearish trends following its strong November performance. The altcoin, widely recognized for its meme-inspired origins, had surged alongside major cryptocurrencies like Bitcoin, showcasing strong market sentiment. However, recent market dynamics suggest a downturn, raising concerns among investors. Speculation continues about the potential impact if Elon Musk, a key advocate, withdraws support for DOGE. This uncertainty fuels questions about how low Dogecoin’s price could drop.
How Low Can Dogecoin Price Drop if Elon Musk Stops DOGE Support
Dogecoin price may face significant volatility if Elon Musk reduces his support for the meme cryptocurrency. Musk’s push for regulatory approval of X Payments, a proposed financial platform tied to his X platform, has encountered roadblocks. Despite extensive efforts, he has not secured full regulatory approval in all U.S. states, which could delay the launch.
Even if approved, the likelihood of Dogecoin being selected as the primary payment currency remains low due to its inflationary nature. Current market charts suggest an initial drop of 40%-60%, pushing the price between $0.123 and $0.22. However, if critical support levels at $0.077 and $0.057 fail, the meme coin could plummet by 82%, reaching as low as $0.0098. Such a decline would reflect the cryptocurrency’s inherent risks amid diminishing support and increasing market pressures.
DOGE Technical Analysis
In recent trading sessions, the DOGE price experienced a significant drop, shedding over 13% of its value in the last 24 hours. The price fell below the critical support level at $0.35, reaching a low of $0.30.
The Relative Strength Index (RSI) on the 4-hour chart shows a reading of 17.67, indicating that the asset is heavily oversold. Such low RSI levels often suggest a potential reversal or a pause in the downtrend as buyers may step in to capitalize on discounted prices.
With the bearish pressure persisting, the Dogecoin price prediction could break the support level at $0.30. If this scenario unfolds, the price may plunge further to test the $0.25 mark. However, if bullish momentum returns, Dogecoin could rebound toward $0.35, offering some relief to its holders.
Dogecoin’s future hinges on market sentiment and Elon Musk’s influence. If Musk steps back, DOGE could face sharp declines, testing critical supports while navigating uncertain investor confidence.
Frequently Asked Questions (FAQs)
Musk’s advocacy boosts Dogecoin’s popularity and market confidence.
Unlimited supply risks long-term depreciation compared to deflationary cryptocurrencies.
DOGE could face sharp price declines and reduced investor interest.
Coingape Staff
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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