Elon Musk’s Latest Tweet Rescues Dogecoin from Price Crash, Here’s Why

The post Elon Musk’s Latest Tweet Rescues Dogecoin from Price Crash, Here’s Why appeared first on Coinpedia Fintech News

On September 7, 2024, Tesla founder Elon Musk saved the price of Dogecoin (DOGE) from crashing amid bearish market sentiment. Due to the significant sell-offs by whales and institutions, the overall cryptocurrency experienced a notable price decline. 

Elon Musk Saves Dogecoin from CRASHING

Amid this selling pressure, DOGE breached its crucial support level of $0.094 and has continuously declined and also reached the low of $0.088 level. During this downturn, Elon Musk shared an AI-generated photo of himself with the moniker “D.O.G.E.” on X (previously Twitter) while citing the Department of Government Efficiency.

However, the post on X spread like wildfire gathered the significant attention of 44 million users, and received half of a million likes within 12 hours. Following this post on X, DOGE experienced a significant price recovery, climbing back above the crucial support level.

If Musk hadn’t made a post on X, there was a high possibility that DOGE’s price would have declined by 20% to the $0.071 level.

Dogecoin Price Prediction

According to expert technical analysis, DOGE is at a crucial support level of $0.094, while its Relative Strength Index (RSI) has formed a bullish divergence on a daily timeframe. This indicates a potential trend reversal from a downtrend to an uptrend, which traders and investors often view as a buy signal.

Source: Trading View

Based on the historical price momentum, there is a high possibility that DOGE could surge by 20% to the $0.113 level in the coming days. However, the technical indicator named the 200 Exponential Moving Average (EMA) indicates that DOGE is in a downtrend. 

Current Price Momentum 

At press time, DOGE is trading near $0.0948 and has experienced a price surge of over 4.5% in the last 24 hours. Meanwhile, its trading volume has declined by 23% during the same period, indicating lower participation from traders amid a volatile market.