Just sometime before, the crypto-space and the Twitter-space were led on fire with the round of Elon Musk acquiring Twitter for $44 billion. This ignited the Dogecoin price rally which spiked more than 36%. However, quickly the asset began to shed its gains and currently displays a huge possibility to descend towards the lower support again.
After accumulating huge buying volume, the asset witnessed a significant bearish pressure over the past couple of hours. Moreover, the possibility of the asset testing the initial support levels at $0.15. If the price fails to hold these levels, a larger descending move may be ignited. And hence a price drain of more than 10% may drag it to its initial levels below $0.13.
As mentioned in the chart, after a couple of rejections, the DOGE price has formed a bearish double top pattern & the neckline is at $0.15. The price is expected to revisit these levels again in the next couple of hours. And hence it is very important to hold and rebound from these levels, else a drop to the lower support is imminent. No doubt the 50-day MA levels may act as interim support but holding may be a strenuous job.
Overall, as the market sentiments turn bearish, the DOGE price may also undergo a significant descending trend. The volume accumulated may not allow the bulls to step in and change the trend. Therefore, similar to each time, Elon Musk’s impact on Dogecoin price appears to fade within no time.