Key Takeaways:
- Dogecoin follows Bitcoin into a possible pit.
- Technicals promise Doge a three-digit uptrend.
- Several Dogecoin core upgrades caught Musk's attention.
YEREVAN (CoinChapter.com) — Dogecoin (DOGE) lost over 10% after ‘dogefather’ Elon Musk announced Tesla’s Bitcoin sell-off.
In detail, on July 20 electric vehicle giant announced it dumped 75% of its Bitcoin holdings, triggering a sell-off wave among BTC investors. As a result, the flagship crypto lost over 6% of its valuation after a week-long 25% rally. Thus, many altcoins followed suit, including DOGE.
The fact that Tesla sold Bitcoin but not Dogecoin caught the crypto community’s attention, and influencer MMCrypto called Musk a “super Troll.”
Also read: Tesla dumps $936M worth of Bitcoin – what’s ahead for BTC price?
Meme coins are notorious for following the drift and feeding off the hype. However, in uncertain times, such as the current bear, likey tend to follow Bitcoin, akin to most altcoins.
As a result, the DOGE/USD exchange rate stood at $0.069 on July 21.
Flatlined price action
As CoinChapter reported earlier, Dogecoin has been trading in a massive Falling Wedge since Aug. 2021. The formation occurs when the price action moves between two converging trendlines with a negative slope.
However, the Falling Wedge is a bullish reversal pattern, and DOGE could confirm it by breaking through the upper trendline.
Moreover, the setup’s price target would be $0.24, or nearly 250% above the current value, which seems unlikely in the present bearish climate.
Also read: Dogecoin daddy Elon Musk can lose Twitter legal battle in just four days.
As of July 21, DOGE/USD rose above the significant mid-range. However, the lowering trading volumes testified to a pending support retest at approximately$0.03, over 50% below the current price.
Dogecoin upgrades get attention from Elon Musk
Meanwhile, the Dogecoin team introduced several upgrades that got the attention of dogefather Musk.
According to the announcement on GitHub, the Core upgrade 1.14.6 focuses mainly on security and network efficiency.
This is a new minor version release, including important security updates and changes to network efficiency. All Dogecoin Core users – miners, services, relay operators and wallet users – are strongly recommended to upgrade.
read the release.
The security-related upgrades involved removing the alert system, a “more reliable” transaction download system, and rejecting “buggy or malformed messages.
Also read: Elon Musk reiterates support for Dogecoin, despite $258bn lawsuit.
It is unclear whether Dogecoin can confirm the Falling Wedge with a three-digit upside move.
Moreover, Bitcoin’s 25% uptrend in the previous weak looks like a dead cat bounce, given that the macro factors behind the bear market haven’t changed. Thus, it is logical to assume that DOGE won’t be able to pull off a powerful rally alone, even with Elon Musk cheering on.
