Elon Musk Reveals Reason Behind Dogecoin Investment, But Why Is DOGE Down?
May 24 2023 - 07:46AM
NEWSBTC
Billionaire Elon Musk has been a long-time supporter of Dogecoin
and he has not been shy when it comes to talking about his love for
the meme coin. Usually, when Musk talks about DOGE, the price tends
to go up as investors rush to capitalize on the publicity. However,
it is not the case this time around because despite Musk mentioning
the meme coin, its price has gone in the opposite direction. Elon
Musk Says Don’t Bet On Crypto Or Dogecoin Tesla CEO Elon Musk spoke
at the Wall Street Journal’s CEO Council Summit held in London and
among other topics, he touched on the crypto industry and Dogecoin
in particular. Musk once again professed his support for Dogecoin,
saying he likes the meme coin because of its humor and the fact
that it incorporated dogs. Related Reading: Data Suggests Small
Holders Will Drive Next Cardano (ADA) Rally However, he further
went on to state that he would not advise anyone to bet their life
savings on either crypto or Dogecoin. “I’m not advising anyone to
buy crypto or bet the farm on, you know, Dogecoin or anything like
that,” the billionaire said when asked if he was still a fan of
crypto.
https://twitter.com/dogeofficialceo/status/1661087434950467584?s=20
Musk has a long history of supporting the meme coin and it was this
support that sent the cryptocurrency rallying to new all-time highs
back in 2021. At different points since then, Musk’s posts have
also moved the price positively. But his stance this time around
has deviated from what is normally expected and the price of DOGE
has suffered for it. DOGE Price Retraces Despite Musk Mention In
one of the rare cases, the price of Dogecoin has actually retraced
after Musk mentioned the meme coin during his interview. The price
is down over 3% in the last 24 hours alone and is now trading
dangerously close to the $0.07 support level. DOGE falls to $0.071
| Source: DOGEUSD on TradingView.com As a result of this, DOGE has
fallen below its 200-day moving average, a move that puts it on a
bearish path over the short to mid-term. Also, with Bitcoin seeing
losses, it has taken the market down with it, so there is not much
room for recovery for DOGE at this time. Related Reading: Meme Coin
Season May Be Over As PEPE, SHIB, DOGE, Continue Decline However,
many in the community continue to hold out hope that Elon Musk will
eventually announce a DOGE integration on Twitter as a payment
method. Such a move would no doubt lead to an at least 50% upside
for the meme coin, and it could be a catalyst for its next rally.
At the time of writing, DOGE is changing hands at a price of
$0.07113. Follow Best Owie on Twitter for market insights, updates,
and the occasional funny tweet… Featured image from iStock, chart
from TradingView.com
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