Dogecoin is on the verge of testing critical support as it struggles to generate any bullish momentum. It would appear as if Elon Musk’s recent comments surrounding Bitcoin continue to dog the coin.
MicroStrategy announced it was planning to buy more Bitcoin, and its shares have jumped. Yet Elon Musk’s Tesla and Dogecoin, which he heavily promotes, continue to slide. The paradox has not gone unnoticed. Perhaps, even Musk himself may have seen that his latest approach to Bitcoin is not helping his favourite assets that much.
Musk came out yesterday to say Tesla would once more adopt Bitcoin as a payment method if miners use 50% of renewable energy in their work. Maybe this was a face-saving move on his part, but apparently the market remains unconvinced. For Dogecoin, it may be a case of Musk either going the whole hog with Bitcoin or nothing at all.
Dogecoin is down 4.18% on the day as of writing. The Dogecoin forecast remains conditional and depends on the behaviour of the candles at the current support.
Technical Outlook for Dogecoin
The Dogecoin forecast will depend on the price action at the trendline support, just above the 0.3014 support level. A breakdown of this price area opens the door towards 0.2195, with 0.2000 and 0.1957 (23 April low) serving as additional targets to the south.
On the other hand, a bounce at the trendline allows for a potential recovery towards 0.3495. The floor of the resistance zone at 0.39 serves as the additional target to the north. Clearance of the resistance zone opens the door towards 0.49 (50% Fibonacci retracement) and 0.54 above it.