Dogecoin Price Drops Below $0.30 – A Fakeout or Start of a Bigger Crash?

The crypto market is experiencing a major selloff, with Bitcoin crashing below $100K, dragging altcoins down with it. Dogecoin (DOGE) has been hit hard

Cryptocurrency prices have crashed drastically over the past week, with Bitcoin (BTC) plunging below the $100K mark and dragging altcoins down with it. Dogecoin (DOGE) has been hit particularly hard by the selloff, losing over 15% in the past seven days. The meme coin has now slipped below the critical $0.30 support, reaching $0.29.

While there is a chance that this could be a fakeout before a quick rebound, current market trends suggest that there could be more downside for DOGE.

After crashing below $0.30, Dogecoin’s price could continue its decline towards lower support levels. If the selling pressure persists, DOGE might head towards $0.28, followed by $0.25. In a worst-case scenario for the medium term, the meme coin could even reach $0.20.

On the upside, if DOGE manages to quickly recover from this support breach, it could attempt to reclaim $0.30. If successful, the meme coin might rally towards higher resistance levels, such as $0.32 and $0.34.

After surging to all-time highs in April 2021, Dogecoin’s price has struggled to maintain its momentum. Despite several attempts at breaking through higher resistance levels, DOGE has faced strong selling pressure.

Is Elon Musk’s Influence on DOGE Fading?

Dogecoin’s price has been closely tied to Elon Musk's tweets for years. Even indirect references, like mentioning "DOGE" in unrelated contexts, would drive prices up. However, that no longer seems to be the case.

Musk has mentioned DOGE several times in recent weeks, but the cryptocurrency's price has barely budged. This raises the question of whether Musk's influence on DOGE is finally waning.

If so, it could have a significant impact on the meme coin's future price trajectory.