Dogecoin Crash 75% Against Bitcoin Since Elon Musk’s SNL Appearance

Dogecoin Crash 75% Against Bitcoin Since Elon Musk’s SNL Appearance

Dogecoin (DOGE) may return to the top ten by market cap, but its loss in both USD and Bitcoin (BTC) terms since Elon Musk’s debut on SNL is significant.

Dogecoin loses the effect of musk

The DOGE/BTC trading pair is down 75% after peaking at 1,287 satoshis on May 9, 2021, the day after Musk hosted a guest on Saturday Night Live, including an infographic titled “The Dogefather.”

DOGE/BTC daily price chart. Source: TradingView

Before his appearance, the billionaire businessman was relentlessly tweeting over the Dogecoin memes, which helped DOGE – a cryptocurrency that started as a joke – achieve a market capitalization north of $90 billion in May 2021.

That’s over 36000% gain in just two years. But things have deteriorated since then.

Investors have mirrored hopes that even Musk’s optimistic wink on SNL toward DOGE would prompt his 106 million followers to buy the meme-token. But Musk did something unexpected: He called Dogecoin “hustle.”

One day later, the price of DOGE started falling from its all-time high. It continues its downtrend to this day, changing hands for about 300 satoshis against its peak of 1,287 satoshis.

Meanwhile, the price of Dogecoin is down more than 90% against the US dollar after it peaked at $0.76 in May 2021.

Elon Musk’s Efforts to Keep Dogecoin Relevant

Musk has made multiple efforts to revive people’s interest in Dogecoin since then.

In May 2021, he open He has been working with Dogecoin developers to improve the efficiency of blockchain transactions since 2019. In addition, Musk’s Tesla and SpaceX have also started accepting DOGE payments for their goods, which has led to a sharp but short-lived price hike.

Furthermore, Musk stated during the March 2022 market crash that he would not sell his crypto holdings, including DOGE and Bitcoin. However, Tesla sold 75% of its bitcoin holdings three months after Musk’s announcement.

The possibility of adding a DOGE payment option to Twitter also collapsed after Musk pulled back from buying the social media giant.

In September 2022, Tesla launched the Cyberwhistle, a limited edition collectible inspired by its Cybertruck, which users can only purchase via Dogecoin.

Will the Dogecoin rebound, then?

Traders have begun to ignore Musk’s famous association with Dogecoin, given their lukewarm reactions to DOGE-related updates lately.

Instead, it appears that traders have been more focused on macro catalysts lately, primarily the consecutive Fed rate hikes that have put downward pressure on cryptocurrencies, stocks and similar risky assets in 2022 and beyond.

Related: Dogecoin Becomes the Second Largest PoW Cryptocurrency

Technical settings also suggest the same. For example, on the weekly chart, DOGE/BTC is now testing 307 satoshis as temporary support, given the level’s history as a strong price floor since November 2021.

DOGE/BTC weekly price chart. Source: TradingView

A decisive break below 307 satoshis will cause DOGE/BTC to test its 200-week exponential moving average (200-week exponential moving average; blue wave) near 244 satoshis as a downside target in 2022 – 20% down.

Down 40% against the dollar

DOGE price has been trending inside a wide descending channel against the US dollar since it reached the top in May 2021, and is now looking at the lower trendline as the next downside target.

DOGE / USD weekly price chart. Source: TradingView

The target appears to be in the range set at $0.048 and $0.036, given the history of these levels as support. Therefore, the DOGE could drop by about 40% against the dollar in the fourth quarter of 2022.

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