Since the beginning of this month, the dogecoin price has been making impressive headway as it seeks to build on a recovery from the May market crash. The crash had pulled dogecoin back to $0.21 before recovering unexpectedly on June 2 to around $0.42.
However, the token has retreated again and is now trading between $0.27 and $0.36. The latest setback comes courtesy of Elon Musk.
Dogecoin Price Analysis
Before we get to Musk, one factor that led to dogecoin’s recovery was its listing on Coinbase Pro, a leading crypto exchange platform. The news of the listing pushed DOGE towards $0.45, but the token has since failed to bypass this level. After the short bullishness, the coin started showing signs of fatigue, and it has fallen below its support level of $0.399.
The meme coin is now on Coinbase as well as Coinbase Pro, but the timing is not good if Coinbase was looking to land a trading fee bonanza from expediting the listing of dogecoin.
But the big news behind the coin falling is Elon Musk. Yes, we know – this is getting boring. But tis time it was a tweet about bitcoin and not dogecoin which has moved the DOGE price lower, in addition to the coins in the rest of the market.
Musk hurts bitcoin – but does it mean more Musk love for DOGE?
Yesterday Musk tweeted: “#Bitcoin” accompanied by a heartbreak emoji. That was enough to trigger a drop in the bitcoin price and virtually every other coin.
But there could be upside to the Musk tweet, which lies in what might follow. If Musk has truly broken-up with bitcoin, then , aside from what that means for Tesla’s holding of BTC, it may also indicate that he might be going all in on dogecoin.
He has already suggested as much, but his vision seemed to have been limited to how is become a green coin by abandoning mining, which is currently merged with the Litecoin chain,
At the time of writing, dogecoin was trading at $0.364. However, evaluating the Moving Average Divergence Convergence shows the token has a high chance of recovering past the bearish mark. If bulls fail, the coin may settle on the $0.37 level.
The price is trading comfortably above its 200-day moving average and is showing signs of coming back from the overnight Musk-inspired shock, which should hopefully take it back above the 100 MA.
Buying crypto going into the weekend is getting riskier and riskier in this market, with the weekend being a time of heightened volatility and weakness.
But for those with a medium-term view and who expect dogecoin development work to see significant upgrades in its technology – and therefore use cases – then the meme coin is a buy at these prices.
Alternatively, if you are worried about the weekend action being bearish, then it might be better to enter late Sunday or Monday, as the prices in crypto tend to firm coming out of the weekend.
Yet another thought to keep in mind is that the weekend sell off may have come early because of Musk, so the weekend could be one for recovery, which would be a pleasant change.
Where to Buy The Dogecoin Dip
Buy DOGE on eToro
eToro ranks as the best overall crypto exchange platform. eToro is one of the leading crypto exchanges with more than 18 million users globally. It is currently supported in more than 140 countries and ranks as one of the safest crypto trading platforms.
eToro supports some of the most popular cryptocurrencies, including dogecoin. One of its advantages is that it offers a demo account for new traders who want to learn more about the platform. It also offers a copy trading feature that is great for beginners who want to increase their chances of making profits.
Buy DOGE on Coinbase
Coinbase is one of the most popular crypto exchanges. The platform is easy to use, and it is supported in more than 100 countries. It is ideal for those who want to purchase doge repeatedly, and its mobile app is supported in both Android and iOS.
Looking to buy or trade Dogecoin (DOGE) now? Invest at eToro!
75% of retail investor accounts lose money when trading CFDs with this provider