Dogecoin (DOGE) price falls despite Elon Musk's influence

Dogecoin (DOGE) prices reacted to news that Tesla founder Elon Musk interacted with the meme coin. The same thing was supposed to happen this week.

But broader market conditions still impacted price action, causing Dogecoin's chart to turn red.

Dogecoin no longer affected by Musk's tweets

I played Elon Musk's statements Dogecoin played a major role in the price action of Dogecoin for the first time in 2021, and since then, a close relationship has developed between the coin and the Tesla founder. This relationship has weakened over the past year as Musk's interest has shifted from Dogecoin to artificial intelligence.

The Dogecoin community rejoiced this week when Musk spoke out in favor of the meme coin. During a session at the Tesla Gigafactory in Berlin. Musk said Dogecoin would be enabled as a payment method for Tesla purchases. He went on to say that the dog token is “the people’s cryptocurrency.”

Surprisingly, this did not affect the price of Dogecoin in any way and even failed to prevent a decline. DOGE Price Due to general market signals.

Over the past 24 hours, Bitcoin prices have dropped significantly and Dogecoin prices have followed the same trend. Since the meme currency has a high correlation coefficient of 0.89 with Bitcoin, it was directly affected.

Additionally, the digital currency did not notice any support from its investors, who began to retreat as the bullish momentum faded. Addresses that transacted on the network decreased significantly.

Previous optimism did not contribute to the increase in actual activity on the series, as the number of active titles fell to a four-week low.

DOGE Price Prediction: 20% Correction Cannot Be Ruled Out

Looking at the daily chart, we can see that... Doge priceKWayne is not far from the start of a downtrend. The first signal comes from the MACD indicator.

This is a trend-following momentum indicator that shows the relationship between two moving averages of a security's price. It consists of a MACD line (the difference between the short-term exponential moving average and the long-term exponential moving average) and a signal line (a moving average of the MACD line).

At the time of writing, these two averages formed a bearish crossover for the first time in a month. These crossovers are generally followed by significant corrections. In the case of DOGE, It will likely fall to $0.147 or $0.134, representing a 12% or 20% correction, respectively.

However, the 50-day exponential moving average (EMA) is still positive and is below the candle. If this level continues to act as support, Dogecoin price could have a chance to recover, rebounding from $0.164.

if DOGE managed to break through level of $0.182, then the bearish hypothesis will be invalidated, which will pave the way for the coin to rise even to $0.20.