Musk on Dogecoin In a recent social media update, former Twitter head Elon Musk mentioned that 'X' was a 'friendly space' for DOGE in response to another user's post. Given Musk's history of DOGE-related communication, it remains uncertain whether this was a subtle reference to the crypto or merely a casual remark
Elon Musk's cryptic tweets related to Dogecoin (DOGE) are a familiar terrain, often shaping the trajectory of the dog-themed cryptocurrency. However, the impact doesn't remain confined to DOGE; it extends to similar tokens like Shiba Inu (SHIB) as well.
Musk on Dogecoin
In a recent social media update, former Twitter head Elon Musk mentioned that 'X' was a 'friendly space' for DOGE in response to another user's post. Given Musk's history of DOGE-related communication, it remains uncertain whether this was a subtle reference to the crypto or merely a casual remark.
Musk's significant influence over DOGE has led to lawsuits from some DOGE holders alleging improper control and manipulation of the token's price. Is this another instance of the same?
Analyzing DogeCoin and Shiba Inu Price Trends
Despite a bullish-looking DOGE/BTC pair, the meme coin king seems to be depreciating against the US dollar. A key bearish signal was the failed breakout in July from a long-term resistance line. While the price initially pushed above the area, it has now firmly established itself beneath it. Such failed breakouts are often indicative of a significant downtrend.
DOGE price found support above the $0.060 area this past week and is currently trading slightly above it. Despite the uptick, the price remains significantly below its historical highs. The weekly RSI is also trending down.
Where could DOGE price head if volatility increases and a genuine breakout occurs? The downside target is clear: a daily close below $0.060 could push the price down to $0.037, marking a 40% drop. On the other hand, a strong rally could aim for $0.15, representing a 140% upswing.
As for SHIB, the token marked a more significant surge during the day, gaining over 4% in value. However, it has since retraced about 1% at the time of writing. Unlike DOGE, SHIB's RSI is also below the neutral line, indicating its overall downtrend.
Doge and Shiba React?
Correspondingly, when examining the trading volumes of Dogecoin and Shiba Inu, it becomes apparent that there's no significant spike in activity. According to volume data available on Santiment, the tokens exhibited a similar pattern of volume on August 23.
At the time of writing, the trading volumes for DOGE and SHIB stood at approximately $233 million and $169 million, respectively.
Musk's social media musings evoke speculation and excitement within the crypto community. While it remains uncertain whether his recent comments could lead to a substantial impact on DOGE and SHIB, it's worth monitoring their price action and trading activity. Volatility is a given in the crypto sphere, and investors should always conduct their own research and consult a financial advisor before making any decisions.
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