Dogecoin Price Analysis: DOGE Price Stays Afloat After Elon Musk Tweet Praising the Meme Coin

Last Updated July 23rd 2021
2 Min Read
  • Elon Musk says that Dogecoin is 10X faster than Bitcoin and has 10X more block size.
  • Crypto heavyweights descend on Musk, saying that the world needs Bitcoin for its decentralization and security.
  • DOGE holds above $0.45 as Bitcoin slumps to $42,000.
  • Dogecoin price remained relatively unchanged during the weekend session. However, the same cannot be said about Bitcoin, whose price continued to explore lower price levels toward $40,000. The largest cryptocurrency tested the support at $42,000 after breaking a long-term uptrend.

    On the other hand, the meme coin managed to hold above $0.45, perhaps due to a tweet by the founder and CEO of Tesla, Elon Musk. While responding to a Dogecoin fan on Twitter, the billionaire reckoned that "ideally, Doge speeds up block time 10X, increases block size 10X & drops fee 100X. Then it wins hands down."

    Elon Musk stirs 'online war' between meme coin fans and Bitcoin

    According to Musk, Dogecoin is a better cryptocurrency than Bitcoin because it is cheaper to transact, it has a larger block size; hence supports faster transactions. However, some prominent figures in the cryptocurrency industry disagree, saying that Bitcoin stands out for its decentralization and security. The founder of MicroStrategy, Michael Saylor, in response to Musk, said:

    "The world needs a decentralized, secure, deflationary store of value like #Bitcoin much more than it needs the more centralized, less secure, inflationary medium of exchange that you describe above."

    Dogecoin bulls focused on recovery

    DOGE trades at $0.47 at the time of writing. Generally, the trend is downward within a descending parallel channel. However, Musk's comments helped keep the crypto afloat as Bitcoin and Ethereum dumped.

    The channel's middle boundary supports the immediate downside. As long as the buyer congestion zone remains intact, Dogecoin bulls will have ample time to concentrate on listing to higher levels.

    Meanwhile, the Relative Strength Index (RSI) has embraced an anchor at 40; subsequently, the upward-pointing indicator hints at recovery coming into the picture. A break above the confluence resistance formed by the 50 Simple Moving Average (SMA) and the 100 SMA would validate the upswing. Besides, trading above the channel's upper limit would encourage more buyers to return amid speculation for higher levels.

    DOGE/USD four-hour chart

     DOGE/USD 4-hour chart 051721

    It is worth noting that the Moving Average Convergence Divergence (MACD) has a bearish signal, as seen on the four-hour chart. The indicator stalled at the mean line (0.00); moreover, the MACD line still has a bearish divergence below the signal line. In other words, the sellers' influence in the market cannot be ignored.

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