On September 7, 2024, Tesla founder Elon Musk saved the price of Dogecoin (Doge) from collapsing amid a bearish market. Due to a significant sell-off from whales and institutions, the entire cryptocurrency market saw a significant drop in price.
Elon Musk Saves Dogecoin From Collapse
Amid this selling pressure, Doge broke through the important support level of $0.094 and continued to decline, even reaching a low of $0.088. During this downturn, Elon Musk Chia an AI-generated image of himself with the nickname “Doge” on X (formerly Twitter) citing the Ministry of Government Efficiency.
However, the post on X went viral, attracting the attention of 44 million users, and receiving half a million likes within 12 hours. Following this post, Doge recovered significantly, climbing back above the important support level.
If Musk had not posted on X, there is a high chance that the price of Doge would have dropped 20% to $0.071.
Dogecoin Price Prediction
According to expert technical analysis, Doge is at a key support level of $0.094, while the Relative Strength Index (RSI) has formed a bullish divergence pattern on the daily time frame. This indicates a possible trend reversal from bearish to bullish, which is often considered a buy signal by traders and investors.
Based on historical price momentum, there is a high possibility that Doge could rise 20% to $0.113 in the coming days. However, a technical indicator called the 200 Medium Moving Average (EMA) shows that Doge is in a downtrend.
Current Price Momentum
At press time, Doge is trading near $0.0948 and has gained over 4.5% in the past 24 hours. Meanwhile, its volume has dropped 23% in the same time period, indicating lower participation from traders amid market volatility.
