Dogecoin suffers from Musk, but technical backdrop offers hope


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Investing.com – Rebounded 1.37% in 24 hours at time of writing, but remains one of the worst Top 10 cryptocurrencies in 7-day performance, falling over 16%.

Many observers have pointed to the fact that Elon Musk is looking for a new CEO for Twitter (NYSE:) to explain why DOGE is falling more than most other cryptocurrencies.

Recall that after the first rumors at the beginning of this week about the recruitment of a new CEO, Elon Musk published a poll on Twitter on Tuesday asking if he should leave the head of the social network, a poll which received a majority of “yes” and to which Musk has promised to comply:

However, it should be remembered that the takeover of Twitter by Elon Musk had given rise to lively speculation about a possible integration of Dogecoin into Twitter, Musk having repeatedly expressed his affection for DOGE.

The cryptocurrency had also exploded by more than 160% between October 25 and November 1 in the face of these speculations.

Thus, the prospect of seeing Elon Musk leave the head of Twitter reduces, in the eyes of Dogecoin fans, the probability of finally seeing a concrete link between DOGE and Twitter.

However, from a chart perspective, there are reasons to be optimistic about the price action of Dogecoin.

Technical analysis does not rule out a sharp rise in Dogecoin

Indeed, analysis of the daily chart shows that Dogecoin is near major support located in the $0.070 area, as seen on the daily chart below.

Dogecoin (DOGE) - Daily Chart

This support, which has already halted several corrections in recent months, reduces the likelihood of Dogecoin falling further. If, on the contrary, the cryptocurrency breaks below this zone, the next support to take into account will be the $0.055 zone.

It’s also worth noting that the 100-day moving average crossed above the 200-day moving average at the end of November, a major bullish signal that has so far failed to bear fruit.

On the other hand, it will be recalled that the last time this signal was recorded, at the beginning of February 2021, the Dogecoin then posted a rise of 2360% in around 3 months.



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