Dogecoin (DOGE) price slumped further 7% today registering a new weekly low of $0.2138 as the downtrend continued for the meme currency. The altcoin failed to hold onto the key support level of $0.227 and analysts believe the downtrend might continue further. Once the fourth-largest cryptocurrency has slipped below XRP to settle for the seventh spot.
DOGE price has lost 70% from its May all-time-high of $0.7376 and the price may continue to slide further if it doesn’t manage to see a trend reversal soon. The dominating bearish sentiment in the crypto market has led to majority of the coins losing over 50% of their valuation from the top.
Dogecoin is seen as a relatively volatile crypto asset whose price has seen wide swings and one of the key reasons behind its mammoth rise this bull season. It has risen from a meme currency valued at a few cents to become a genuine investment option for many registering over 5,000% rise in price in 2021.
Read More: Ripple, Dogecoin Price Analysis July 8, 2021
Elon Musk’s Hold on DOGE Price is Vanishing Fast
One of the key reasons behind Dogecoin’s price rise was Elon Musk factor whose tweets in the past has pumped its price in upwards of double digit swings. Thousands of new social media traders invested heavily in the meme coin based on Musk’s tweet and they definitely made significant profit during the bull season. However, Musk’s hold on DOGE price is vanishing fast as his recent tweets have failed to move the market.
— Elon Musk (@elonmusk) July 2, 2021
This news might not be good for Dogecoin holders especially those who specifically invested in the meme currency because of Elon’s impact on its price, however, in general many marker pundits believe we are moving into the post Musk era where the billionaire cannot manipulate the market price by his single tweet.
Many had warned Elon Musk of the consequences that many amateur crypto traders might face for investing in the meme currency with no use case, and the likes of Max Kesier had predicted that the meme currency would decline at a similar rate at which it has risen.