Dogecoin Plunges 5% After Elon Musk Gets Called Back For Twitter Probe
February 13 2024 - 6:00AM
NEWSBTC
The cryptocurrency market was rattled as Dogecoin (DOGE)
experienced a significant 5% decline in value, sending shockwaves
through the industry. This decline, which caught many investors off
guard, is attributed to a combination of factors that have created
a cloud of uncertainty around the popular digital asset. Related
Reading: Dogecoin Stuck In Limbo: Will Valentine’s Day Bring Love
(And Price Gains)? Firstly, the overall market sentiment towards
cryptocurrencies has been bearish, with many investors becoming
more cautious due to regulatory concerns and the ongoing legal
troubles of influential figures in the industry. Elon Musk’s Issues
Affect Dogecoin Price Elon Musk, the enigmatic figure known for his
support of Dogecoin, was called back to provide testimony in a
regulatory investigation regarding his purchase of Twitter. This
has cast a shadow over the future of Dogecoin, as the outcome of
Musk’s legal battles could have far-reaching implications for the
cryptocurrency. ELON MUSK MUST TESTIFY AGAIN IN REGULATOR’S PROBE
INTO TWITTER ACQUISITION — U.S. COURT RULING — *Walter Bloomberg
(@DeItaone) February 11, 2024 Technical indicators further compound
the challenges facing Dogecoin, as they reveal that the coin’s
bulls are struggling to gain momentum. The rejection at the 50-day
Exponential Moving Average has created a strong resistance level,
hindering any significant upward movement. Additionally, Dogecoin
is at a critical juncture due to declining trading volume,
signaling a potential period of consolidation or a waning interest
in the digital asset. #Dogecoin is experiencing a decrease in
transaction volume and whale transaction count, which typically
indicates lower trading activity. This could be a sign that fewer
people are buying, selling, or transferring #DOGE, possibly due to
reduced interest or confidence in it! pic.twitter.com/SiKNxx4FhN —
Ali (@ali_charts) February 12, 2024 The uncertainty surrounding
Dogecoin is exacerbated by the possibility of it being classified
as an investment akin to a stock, which could subject it to
stringent regulations and negatively impact its value. If judges
rule in this manner, it could deter potential buyers and erode the
coin’s value, posing a significant threat to its future. SHIB
market cap currently at $5.6 billion. Chart: TradingView.com
There’s Still Light Ahead Despite these challenges, there is still
a glimmer of hope for Dogecoin’s supporters. A potential recovery
in the cryptocurrency is on the horizon if it can maintain its
position above the 200-day moving average and overcome the negative
sentiment stemming from Musk’s legal woes. However, a breach of
this support level could lead to further declines and test lower
support levels, potentially dropping to $0.065. Related Reading:
Shiba Inu On Cusp Of Lunar Launch As 1.3 Trillion SHIB Barrier On
Crosshair The decline in Dogecoin’s market capitalization and
trading volume underscores the unpredictable nature of the
cryptocurrency industry. As the market leader grapples with these
challenges, it must adapt to the rise of other cryptocurrencies and
find ways to distinguish itself. Featured image from Pexels, chart
from TradingView
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