Elon Musk Prepares Dogecoin to Challenge Bitcoin — DOGE Recovers

Elon Musk Prepares Dogecoin to Challenge Bitcoin — DOGE Recovers
Image by WikiImages from Pixabay

Yerevan (CoinChapter.com) – Dogecoin (DOGE) once again managed to avoid a decline thanks to Elon Musk, the eccentric billionaire CEO of Tesla and SpaceX, and a self-proclaimed “Dogefather.” He attempted to propel the token upwards, this time by pitting it against the top cryptocurrency, Bitcoin (BTC).

Dogecoin promotion

Mr. Musk is famous for using Twitter as his main platform for Dogecoin promotion. He once again tweeted about the token, inviting his followers on to Reddit. The CEO urged the ‘Doge army’ to exchange ideas and brainstorm about making the blockchain more effective. The subreddit already has 2 million ‘subshibers.’

The billionaire also tweeted about his suggestions on how to make Bitcoin ‘greener’. Time will tell if the idea is as ‘promising’ as he thought. The tweet got mixed responses from his followers, blaming him for ‘tanking’ the market. Others are hopeful to see a greener approach to mining soon.

Where is Dogecoin?

Mr. Musk promoted the token successfully. Dogecoin was recovering from the recent crash. The token traded at $0.35 in the early Frankfurt session Tuesday, using the 50-day simple moving average as additional support (SMA-50; red wave on the chart below).

Moreover, the 20-day exponential moving average slightly corrected its trajectory, moving horizontally rather than sloping down. If the EMA-20 wave continues on its present course, it could avoid the looming death cross.

In hindsight, the death cross is a bearish technical indicator. It appears when the short-term moving average crosses below the long-term moving average. Traders perceive it as a signal that they should sell off their existing positions to rake in early profits — and avoid a steeper dropdown.

Dogecoin recovering. Source: DOGEUSD on TradingView.com
Dogecoin recovering. Source: DOGEUSD on TradingView.com

Meanwhile, Bitcoin…

…consolidated around the $39,000 margin, albeit making attempts to recover. The alpha cryptocurrency traded at $39,068 in the European session Tuesday.

Read more: Bitcoin Week Ahead Ep05: Oversold Bounce Expected on Top Crypto Influencers’ Keynotes at Consensus 2021

The token’s Relative Strength Index (RSI; purple curve on the bottom of the chart) stood approximately 37. The reading suggests that the BTC price might go bullish in the upcoming sessions as many traders consider the token now stands almost oversold.

BTC consolidating around the 3$9,000 margin. Source: BTCUSD on TradingView.com
BTC consolidating around the 3$9,000 margin. Source: BTCUSD on TradingView.com

But Mr. Musk’s scenario of Dogecoin overpowering Bitcoin still seems weak. As of the moment of writing, Dogecoin holds 6th place by market cap with $47.5bn to Bitcoin’s $731.4bn. Many experts believe that the hype on social media is not enough to propel Dogecoin to a leading position.

Read more: 3 Reasons Why Dogecoin Price Could Crash By Another 50%

The Ultimate Holder?

Moreover, the entrepreneur has been vocal about his take on Dogecoin whale holders (wallets or portfolios holding a substantial percentage of the token). He asserted that whale holders cause too much concentration and centralization.

Lately, a mysterious private wallet resurfaced, causing a new wave of speculation on social media. It holds $12 billion worth of Dogecoin. The wallet holder purchased the Doge back in 2019 and made billions worth of profit. The meme token was worth only $0.0018 back then.

Therefore, Twitterverse was curious as to who is the wallet owner. Many thought it’s the Dogefather himself, which would be quite strange considering his stance on whale holders.

Read more: Dogecoin Price Will Crash To Zero, Asserts Analyst

Meanwhile, Elon Musk continued to promote Dogecoin on Twitter. He called the token “more efficient” than Bitcoin. However, the billionaire’s plans to propel Doge to the leading position don’t have much merit. Many experts think the token is way too volatile and hype-dependent.

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