Elon Musk Dogecoin Price Soaring, But Is This a Sustainable Trend?

Dogecoin (DOGE) experiences price swings due to Elon Musk's public endorsements and tweets, yet analysts predict this will spark an upcoming significant market dip

Dogecoin (DOGE) has seen some price swings, with analysts saying that this could spark an upcoming significant market dip, probably in the next few months.

Elon Musk’s commitment to the meme coin appears to be waning, and experts predict that regulatory curtailment and changing business directions within Musk's operations could render DOGE unable to maintain its current value levels.

The meme coin has benefited from hype, but after a month of whale activity showing DOGE distribution, analysts believe that the coin may be entering a downward phase. It is no secret that the meme coin lacks major network developments or practical utility, which may explain why it is struggling to maintain value despite the hype.

Moreover, the meme coin appears to be running out of steam, especially as its price experiences difficulties breaking through the $0.1720 zone despite attempts to recover from a downtrend.

A glance at the Dogecoin 5-minute chart below reveals attempts to recover from a downtrend, highlighted by support at $0.1640 and resistance at $0.1720. The price action is struggling to break past the $0.1680 zone. The RSI indicator shows multiple oversold conditions, leading to minor bounces, while a recent overbought reading resulted in a price rejection. The MACD indicator presents a series of Golden Crosses and Death Crosses, indicating frequent trend shifts. The latest Golden Cross suggests slight bullish momentum, but the price faces strong resistance.

Examined by Triparna Baishnab, posted on TradingView

If bulls can push above $0.1680, then we might see a retest of $0.1700-$0.1720, further strengthening the bullish case. However, if sellers manage to break the support at $0.1640, then we might see a drop towards $0.1620 or lower.

The varying investment priorities of Elon Musk, juggling DOGE coin assets with other entrepreneurial ventures, might result in sudden shifts in the market prices of DOGE.

However, a few bullish investors believe that institutional adoption with new use scenarios might sustain DOGE in the long term despite these temporary market threats.

The blockchain payments platform Remittix is highlighting its method of payment backed by gold as an alternative to meme coins. While DOGE relies heavily on social sentiment and experiences volatility, Remittix is aiming to provide stability and economic value by combining gold reserves within its crypto transaction platform.

As the market becomes increasingly interested in assets that offer intrinsic value and stability, several investors are likely to view Remittix as a safer and more economically viable alternative to coins like Dogecoin, which are facing uncertainties and risks.