Why the Dogefather will not save the Dogecoin Dip?
Once Elon Musk appeared on the SNL in May, the value of Dogecoin crashed for more than 75%. On Tuesday, this meme coin became the worst digital coin for many investors.
The romance of Dogecoin with the Dogefather
Earlier this year, Elon Must started posting tweets about Dogecoin. That was a great signal for many crypto investors, because the price of the coin skyrocketed. Must did help a meme coin to become the one of the ten best coins for investment.
Nevertheless, that didn’t last long.
Dogecoin lost 24% during 24 hours and hit $0.17413, as claimed on CoinGecko. That was about 76% lower, than the record of $0.7, which was reached in May due to the expectations that Elon Musk will use the SNL performance to push the token up.
The cap of the market also fell from $94 billion to just $23 billion on Tuesday.
The CEO of Tesla appeared on SML, Dogecoin began moving lower, and the dream of $1 per coin did not come true. As Michael Kamerman, the CEO of Skilling mentioned, the appearance of Musk didn’t cause the rise, but gave the opposite effect.
Cryptocurrency had a dramatic fall since may, after Elon Musk mentioned about paymets for Teslas using BTC, so China begun “mining”.
Why Elon Musk is no longer a helper
Elon Musk attracted many users to pay attention to him after the Dogecoin fall. Musk didn’t abandon the Dogecoin for too long.
When the creator of the Dogecoin, Ross Nicoll, mentioned on Twitter about some changes of Dogecoin system, Musk replied with “This is an important improvement”.
Couple of days ago, Tyler Durden, an anonymous analyst mentioned that the pattern of “Head and Shoulder” of the Dogecoin proves its tendency to crash when it will reach $0.299 (it did). He also claimed that Elon has no opportunity to save Dogecoin:
“Even Elon can’t save this with his tweets. He’s tried and each time he just created another lower high. 0.05 is programmed.”
Furthermore, analysts warned traders that this memecoin is nothing but a speculative mania, and its price highly depends on tweets of a celebrity.
Susannah Streeter says:
“In this climate, it’s not a surprise that dogecoin, which began its crypto journey as a joke, has suffered one of the steepest declines in recent days.”