Dogecoin Price Drop: Does Elon Musk Still Hold The Key?

Key Points:

• Musk's ongoing support for Dogecoin, despite its origins as a joke contribute to the broader dialogue about the legitimacy and utility of digital currencies.

• Musk's enthusiastic promotion of cryptocurrencies, particularly Dogecoin, raises questions about the balance between innovation and credibility in the tech and financial sectors.

Elon Musk is indubitably one of the most outspoken proponents of Dogecoin, the popular dog-themed cryptocurrency. The brilliant founder of Space X and Tesla has consistently thrown his weight behind Dogecoin, sparking criticisms and allegation of market manipulation.

Elon Musk in one of his tweets, called himself "The Dogefather" and tweeted about the token regularly. But Musk seems to be losing steam with his recent attempts to drive up Dogecoin's price. 

Furthermore, Musk, who made frequent pronouncements on social media, influencing the price and popularity of Dogecoin and other cryptocurrencies, stated in one of his interviews that Dogecoin will eventually surpass Bitcoin.

Dogecoin's Current Situation

Dogecoin (DOGE), has recently experienced some intriguing market fluctuations as it has been trending downwards for several months now. Dogecoin(DOGE) has shown some bearish movement with its support level currently at $0.07797 while the resistance is at $0.0828.

At the moment, the cryptocurrency's trading value for Dogecoin is about 3.14% less than its peak. Those who bought into Dogecoin during its heyday may find this frustrating, but it's important to keep in mind that the cryptocurrency industry is a volatile and unpredictably changing environment.

It is so gloomy for Dogecoin that if Elon Musk's tweets increased its price momentarily from $0.08 to $0.09, the increase would be minimal in comparison to earlier Dogecoin pumps. Notably, Dogecoin's price dropped below $0.08 in less than a day.

Is Elon Musk's Influence Waning?

Musk supports Dogecoin fervently. In June 2022, he announced on Twitter(now X)that Tesla customers would be eligible to pay for their products using Dogecoin, igniting a broader discussion about the legitimacy and dependability of cryptocurrencies.

However, Musk's ability to affect cryptocurrency prices seems to be waning in light of the cooling cryptocurrency market and mounting criticism.

Some have speculated that he may cease tweeting about cryptocurrency. Although the CEO of Tesla contributed to Dogecoin's meteoric rise in 2021, his most recent attempts to promote the token don't seem very effective.

Conclusion

Elon Musk's backing has helped in the growth and popularity of the meme-inspired cryptocurrency. But with Dogecoin experiencing a disappointing dip, its future remains unsettled and the market does no longer seem to be affected by Elon Musk's magical tweets.