Dogecoin (DOGE) price is down another 7% today and the downtrend continues for the humorous coin. Dogecoin registered a new low this week at $0.2138. The altcoin failed to hold the key support level of $0.227. Analysts believe that the downtrend may continue further. The fourth largest cryptocurrency, Dogecoin, fell to the seventh place with its decline. Thus, Doge fell below XRP.
Figure 1. Dogecoin price analysis
The Doge is down nearly 70% from its all-time high of $0.7376 in May. If the Doge fails to break the downtrend soon, the price may continue to drop further. The prevailing bearish sentiment in the crypto market has caused most cryptocurrencies to lose more than 50% of their value.
Dogecoin is seen as a volatile crypto asset as its price fluctuates widely and rises massively during the bull season. In 2021, it recorded an increase in price of over 5,000%. Thanks to this, Doge has become a real investment option for many and its popularity is increasing day by day.
Elon Musk influence on Dogecoin fades
One of the most important reasons behind the Dogecoin price increase was the Elon Musk factor, which increased its price to double digits with his tweets in the past. Thousands of new social media investors invested heavily in the humorous coin based on Musk’s tweet and made huge profits during the bull season. Recently, Musk’s influence on the Doge price is quickly fading as his recent tweets have failed to move the market.
This news may not be good for Doge owners. It doesn’t look good for those who are specifically investing in dog-branded cryptocurrency, especially due to its impact on Elon’s price. In general, many believe that we are entering the post-Musk era, where the billionaire cannot manipulate the market price.
Notables had warned amateur crypto traders of the consequences they might face. Familiar names like Max Kesier predicted that the humorous coins would fall as they rose.