Elon Musk sued for $258M while Dogecoin (DOGE) sank 12% in a day

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YEREVAN (CoinChapter.com) – Elon Musk and his companies, Tesla and SpaceX, were sued for $258 million, as announced late on June 16. Keith Johnson, “an American citizen who was defrauded out of money by defendants’ Dogecoin Crypto Pyramid Scheme,” claimed that Musk’s companies constitute an illegal racketeering scheme to inflate Dogecoin’s price.

Elon Musk faces Dogecoin scheme accusations.

Admittedly, the billionaire entrepreneur has a soft spot for the canine crypto and even sported the nickname ‘Dogefather.’ He repeatedly tweeted about the meme coin, causing DOGE price to fluctuate. However, Johnson sought to represent a class of people who have lost money trading in Dogecoin since April 2019.

In detail, DOGE’s value dumped over 90% since skyrocketing in May 2021. After the Doge collapse, Johnson asks for $86 billion in damages, plus triple damages of $172 billion. But the demands don’t end there.

Also read: Dogecoin rallies following Elon Musk SpaceX tweet.

The alleged scheme victim called for an order blocking Musk and the companies from promoting Dogecoin. He also asked to declare Dogecoin trading akin to gambling under the U.S. and New York law.

SpaceX staff embarrassed

Meanwhile, SpaceX employees wrote an open letter to the company executives, worried that Musk’s public persona is a frequent source of embarrassment.

Elon’s behavior in the public sphere is a frequent source of distraction and embarrassment for us, particularly in recent weeks. As our CEO and most prominent spokesperson, Elon is seen as the face of SpaceX — every tweet that Elon sends is a de facto public statement by the company.

stated the letter.

Also read: Dogecoin rallies as Elon Musk joins Twitter board of directors.

As Musk grappled with Dogecoin-based allegations against him and his companies, the DOGE token fell 12% but didn’t lose crucial support.

Dogecoin (DOGE) technicals cheerful despite the 90% crash

The original meme coin traded at $0.056 in the New York session on June 16. Moreover, it boasted a Falling Wedge on the daily chart, active since Aug. 2021. The formation features two converging trendlines with a negative slope. The price action consecutively retests the trendlines as support and resistance while the value gradually declines.

The setup is a bullish reversal pattern that promises an upside move after the token exhausts the pattern. Moreover, the estimated move equals the maximal distance between the trendlines. Thus, the target price for DOGE would stand at approximately $0.25.

Also read: Tesla merchandise buyable with Dogecoin (DOGE), announces Elon Musk.

However, a scenario where Dogecoin defies the overall market trend appears quite unlikely. Leading cryptocurrencies and the broader economy don’t favor the bulls. Moreover, controversies around platforms like Tron, Celsius, and Three Arrows Capital threaten the DeFi market. Dogecoin would have a hard time sidestepping those factors if the Falling Wedge was to pan out.

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