Bitcoin prices plunged on Friday after Dogecoin’s chief promoter Elon Musk tweeted a hashtag of BTC with a broken heart emoji. However, this move did not go down well with many in the crypto community.
Bitcoin has been unable to breach the 40K mark after flirting with it on 26 May. A renewed attempt failed on Thursday before Musk’s tweet send the BTC/USD pair lower by nearly 9%. The pair has recovered slightly but is still down 5.61% as of writing.
How did Dogecoin traders react? Dogecoin got sold off as well, losing 6.71% after failed attempts at breaking past the resistance wall that lies between $0.39 and $0.43. Is a correlation now building between Dogecoin and Bitcoin? Maybe not, but this may perhaps give Dogecoin traders a heads up as to what to do whenever Elon Musk makes any Bitcoin-related tweets.
Technical Outlook for DOGE/USDT
Dogecoin’s rejection at the resistance zone finally found a floor at the 78.6% Fibonacci retracement level (0.3459). The slight bounce now keeps the price range-bound between 0.34 and the resistance zone (0.39-0.43). A breakdown of the 0.34 support allows the price to descend towards the 0.30 psychological price level, with 0.25 and 0.21 serving as additional targets to the south.
On the flip side, if bulls can breach the tough resistance zone, it converts the zone into a support wall. We could then see a return move and a bounce on this support wall that targets 0.45 initially, before 0.49 and 0.54 (0.382 and 0.50 Fibonacci retracement numbers) come into the picture as upside targets.