The Dogecoin price has dropped by more than 40% from its all-time high of $0.088 to today’s low of $0.054. The sell-off accelerated on Friday after Elon Musk expressed his concerns about the number of whales holding the digital currency. Some investors have also questioned the validity of DOGE as a major cryptocurrency.
Dogecoin news: Dogecoin has been in the news a lot lately. The enthusiasm of the little-known currency started early this month during the Wall Street Bets euphoria. It was then supercharged by tweets by Elon Musk, the well-liked and highly-followed CEO of Tesla and the world’s richest man.
However, in reality, the currency has been extremely volatile because of the participation of retail traders, most who don’t understand what it is. On Friday, Elon Musk tweeted that he was concerned about the number of whales, or large investors who currently hold the currency. He said:
Dogecoin price forecast
On the four-hour chart, we see that the Dogecoin price dropped to a low of $0.0473 during the weekend. This price was slightly below the 50% Fibonacci retracement level. Notably, the price seems like it has formed a descending channel. The two downswings were in part a false breakout pattern.
Therefore, in my view, I believe that some bulls will start coming back and attempt to retest the upper side of the descending channel. This price is at $0.064, which is about 17% above the current price. Notably, the price is also also along the 23.6% Fibonacci retracement level. This prediction will be validated if the DOGE price falls below yesterday’s low of $0.0473.