Dogecoin had grown mainly off the back of billionaire Elon Musk’s shilling. By this time last year, the meme coin was booming in its full glory as tweet after tweet from the ‘Dogefather’ brought investors into the project in droves. Since then, the hype around the project has since died down as the price has lost more than 80% of its all-time high value. What’s more, is that now the meme coin seems to have developed a resistance against the billionaire’s shilling.
Dogecoin Says No To Elon
In the early hours of Friday, Elon Musk had once again tweeted in support of Dogecoin. This had developed from a tweet where Musk himself had said that the use of the word ‘billionaire’ should not be pejorative as it is “morally wrong and dumb.” A response from another tweeted user had suggested that the word ‘trillionaire’ was better than using billionaire anyway, to which Musk had replied, “Dogecoin Trillionaire, the movie.”
Dogecoin Trillionaire, the Movie ????
— Elon Musk (@elonmusk) May 26, 2022
Now, a tweet like this from Musk would have pumped the price of Dogecoin beyond comprehension 6-8 months ago. This would prove to not be the case this time around because although there was a small movement in the price of the digital asset, it was in no way significant. This has raised speculations in the space on whether the billionaire has indeed lost his influence on the price of the meme coin.
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At the time of writing, the tweet is a couple of hours old. Looking at the Dogecoin chart shows that there was barely any movement in the price of the meme coin at the time the tweet went live and in the hours following it. Thus leading to the conclusion that investors are no longer hanging on every word of the billionaire when it comes to DOGE. Instead, the price of the digital asset has continued to trend around the $0.077 territory.
DOGE trending at $0.0779 | Source: DOGEUSD on TradingView.com
Why DOGE Did Not Move
In the crypto space, it is very well known that hype makes a difference in the value of a digital asset. But what if that digital asset, along with the rest of the cryptocurrencies in the market, has been on an extended bear trend?
This has been the case with Dogecoin in the last couple of months. The meme coin is still trending significantly below its 100 and 200-day moving average. What this means for the digital asset is that both in the short and long term, it is a seller’s market. Thus, the bears are in control.
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The meme coin has also been in a prolonged state of consolidation. However, unlike times where consolidation usually ends with a recovery, DOGE shows no such signs. Accumulation is almost non-existent which continues to contribute to its dump in price. Without a steady accumulation trend, Dogecoin has little chance of breaking out of this consolidation in the short term.
DOGE is trading at $0.0775 at the time of writing. It still remains the 10th largest cryptocurrency in the space with a market cap of $10.34 billion.
Featured image from The Dial, chart from TradingView.com
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