Key Takeaways:
- Musk may resign from Twitter CEO position.
- Dogecoin hoped for the status of 'Twitter currency.'
- Charts don't favor the bulls, as DOGE might tank another 23%.
YEREVAN (CoinChapter.com) – Dogecoin(DOGE) and eccentric billionaire-entrepreneur and Twitter CEO (still) Elon Musk go way back when Doge was just a pup, and Musk would pump the coin through any social media platform he could lay his hands on. But now that Musk’s position at Twitter is shaky, what will happen to Dogecoin?
Will Musk stay at Twitter after all?
The meme token had a real chance of becoming the official Twitter currency. Rumors circulated that Musk planned to set up a Twitter wallet, and the team was working on the wallet’s prototype in late October.
But will Musk stay at Twitter for long? As CoinChapter reported earlier, the chief executive set up a pole on Dec 19 to determine the level of support among users. He asked the Twitterverse to vote on whether he should turn in the ‘CEO badge’ and promised to abide by their decision.
The pole ended hours ago, but the still-CEO has yet to comment on the majority’s opinion to remove him from the position. However, the question for Dogecoin supporters remains relevant. The billionaire has shilled the coin on many occasions, and his position at Twitter was a perfect opportunity for the ‘DOGE army’ to reap some gains on the otherwise stagnant coin.
Also read: Bitcoin Price Eyes Crash Toward $15K in Early 2023.
Dogecoin charts pessimistic
As of Dec 20, DOGE price stood at $0.074, after a 20% weekly decline. However, charts aren’t looking too bright for the meme coin, as it risks losing another 23% of its valuation.
In detail, the price of DOGE currently stands at crucial support. However, the trading volumes have been declining since the Twitter acquisition in late October, hinting at lowering interest among investors. Thus, another drop might be in the books, and if so, the next available support would be the $0.057 level, constituting the 23% drop mentioned above.
Moreover, the digital asset formed a ‘death cross’ between the 20-day and 200-day exponential moving averages (EMA). The death cross occurs any time a short-term MA crosses below a long-term MA. The shift in dominance signifies a bearish phase ahead and could provide additional resistance should the token make upside attempts.
Also read: Is Elon Musk, The Chief of Twit, Selling His Twitter Shares?
Given the bearish technicals and Musk’s silence on the pole results, a bearish short-term scenario seems likely for Dogecoin. However, given the meme token’s dependence on its biggest proponent, one Tweet from the ‘Dogefather’ could remedy the situation, as it happened many a time in the past.
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