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Elon Musk Reveals Reason Behind Dogecoin Investment, But Why Is DOGE Down?
Billionaire Elon Musk has been a long-time supporter of Dogecoin and he has not been shy when it comes to talking about his love for the meme coin. Usually, when Musk talks about DOGE, the price tends to go up as investors rush to capitalize on the publicity. However, it is not the case this time around because despite Musk mentioning the meme coin, its price has gone in the opposite direction.
Elon Musk Says Don’t Bet On Crypto Or Dogecoin
Tesla CEO Elon Musk spoke at the Wall Street Journal’s CEO Council Summit held in London and among other topics, he touched on the crypto industry and Dogecoin in particular. Musk once again professed his support for Dogecoin, saying he likes the meme coin because of its humor and the fact that it incorporated dogs.
However, he further went on to state that he would not advise anyone to bet their life savings on either crypto or Dogecoin. “I’m not advising anyone to buy crypto or bet the farm on, you know, Dogecoin or anything like that,” the billionaire said when asked if he was still a fan of crypto.
Musk has a long history of supporting the meme coin and it was this support that sent the cryptocurrency rallying to new all-time highs back in 2021. At different points since then, Musk’s posts have also moved the price positively. But his stance this time around has deviated from what is normally expected and the price of DOGE has suffered for it.
DOGE Price Retraces Despite Musk Mention
In one of the rare cases, the price of Dogecoin has actually retraced after Musk mentioned the meme coin during his interview. The price is down over 3% in the last 24 hours alone and is now trading dangerously close to the $0.07 support level.
DOGE falls to $0.071 | Source: DOGEUSD on TradingView.com
As a result of this, DOGE has fallen below its 200-day moving average, a move that puts it on a bearish path over the short to mid-term. Also, with Bitcoin seeing losses, it has taken the market down with it, so there is not much room for recovery for DOGE at this time.
However, many in the community continue to hold out hope that Elon Musk will eventually announce a DOGE integration on Twitter as a payment method. Such a move would no doubt lead to an at least 50% upside for the meme coin, and it could be a catalyst for its next rally.
At the time of writing, DOGE is changing hands at a price of $0.07113.
Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet… Featured image from iStock, chart from TradingView.com