Elon Musk’s latest hint about sending Dogecoin to the moon generated brief excitement but ultimately failed to sustain any meaningful price movement. The cryptocurrency saw an initial 4% jump on Tuesday before erasing all gains and closing down approximately 5% for the day.
The decline did not stop at Tuesday’s 5% loss. Dogecoin has continued sliding in subsequent trading sessions, extending the bearish trend. At the time of writing, the token trades at around $0.09085, following a 10.87% decline over the last 24 hours.
This breakdown triggered the anticipated panic-selling wave. DOGE has tested the $0.08- $0.09 range that analysts warned could become the next support zone. Trading volume increased during the selloff, confirming genuine selling pressure rather than low-liquidity volatility.
DOGE initially outperformed Bitcoin and Ethereum in early trading hours. The enthusiasm proved fleeting as broader cryptocurrency weakness pulled meme tokens lower. Shiba Inu followed a similar trajectory, dropping roughly 9.5% in the last 24 hours despite no direct connection to Musk’s comments.
Market Fatigue Sets In
The muted response signals potential exhaustion with Musk-driven cryptocurrency rallies. Past tweets and statements from the billionaire entrepreneur previously sparked significant price movements in Dogecoin. This time, traders showed little sustained interest.
Dogecoin currently trades at a critical $0.10 support level. Breaking below this psychological threshold could trigger widespread selling pressure. Analysts project potential downside to the $0.08-$0.09 range if support fails.
The token sits beneath all major exponential moving averages. The 20 EMA stands at $0.11988, while the 50 EMA reaches $0.13044. The 100 EMA extends to $0.14650, and the 200 EMA hits $0.16834. This layered resistance creates substantial obstacles for any recovery attempt.
Technical traders refer to this formation as a “death zone” of resistance. Each level presents sellers with opportunities to exit positions. The descending trendline intersecting around $0.12-$0.13 adds another barrier to upward movement.
The Parabolic SAR indicator at $0.11916 confirms the downtrend continues. This technical signal suggests selling pressure maintains control over price action. Bulls need significant buying volume to reverse the current momentum.
Source: https://coinpaper.com/14346/dogecoin-ignores-elon-musk-hype-doge-price-falls-over-10-despite-moon-mission-tease
