Did Elon Musk “Kill” Dogecoin? Can DOGE Bounce Back as Investors Flee?

Jakarta, Pintu News – Elon Musk has been instrumental in the surge in the price of Dogecoin (DOGE) over the past few years. However, his latest move may have the opposite effect.

After President Donald Trump appointed Musk to lead the Department of Government Efficiency (DOGE), people’s attention was diverted from the coin meme itself.

With so many investors pulling out, has Elon Musk damaged Dogecoin’s popularity, and can the DOGE price recover?

Elon Musk Killed Dogecoin’s Popularity – Can DOGE Price Recover?

Musk was one of the catalysts that fueled the Dogecoin (DOGE) price surge in late 2024. Back then, President Donald Trump appointed Musk and Vivek Ramaswamy to lead the DOGE department.

Read also: Dogecoin Price Prediction: Ali Martinez Predicts a Potential Massive Rebound for DOGE!

While this designation worked in Dogecoin’s favor at the time, over time the public’s attention began to drift away from the meme coin.

Data from Santiment shows that DOGE search volume peaked on November 12, 2024, which coincided with Musk’s appointment. At the time, this spike in search volume was also followed by a rise in the price of DOGE. However, this trend has since changed.

Although DOGE search volume remains quite high, the DOGE coin meme is no longer getting the same attention. Instead, the DOGE price continues to experience a sharp decline.

However, Musk is not the only cause of DOGE’s bearish outlook. The recent meme coin craze on PumpFun’s Solana launchpad has diverted attention from older coins like Dogecoin and Shiba Inu (SHIB).

As investors chase quick profits through this meme coin, the liquidity of the DOGE market decreases, which weakens demand.

Interest in Dogecoin Drops

Reporting from Coingape (2/26/25), the number of daily active addresses further shows the lack of investor interest in DOGE. This metric has dropped to a previous low after reaching a record high in November.

This drop indicates reduced market participation which could lead to sideways price movements or even trigger a bear market.

This correlation between Dogecoin’s price and the number of addresses suggests that hype is crucial to the meme coin’s performance.

Read also: 5 Crypto Struggling with Heavy Losses This Week!

If market interest remains low while Musk and the Solana (SOL) meme coin continue to divert attention from DOGE, the DOGE price may face more challenges.

Can Dogecoin Break Its Ties with Musk’s DOGE and Rally?

As of February 26, 2025, the Dogecoin price is currently under bearish pressure. At the time of writing, DOGE is trading at $0.21 with a marginal decline of 0.2% in the last 24 hours.

However, the setup on the daily chart supports a bullish Dogecoin price prediction, which could trigger a rally towards $1.

DOGE has been trading below the 50-day Simple Moving Average (SMA), which is a key resistance level that has been controlling the bearish market. After yesterday’s drop, DOGE prices also fell below the 200-day SMA at $0.24, reinforcing the bearish trend.

However, momentum indicators suggest that the Dogecoin price may be on the verge of a reversal. The Relative Strength Index (RSI) is currently at 29, which puts DOGE in oversold territory. This indicates a possible exhaustion in sellers which could trigger a temporary rally.

The Awesome Oscillator histogram also shows bullish divergence, indicating that the downward momentum is slowing down.

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If the downtrend does weaken, DOGE prices may rebound in the coming days. If the price moves back above the 200-day SMA, the key resistance levels are at the 50% and 100% Fibonacci levels, at $0.37 and $0.48, respectively.

Moreover, if the meme coin can break the ties with Musk’s DOGE and rally, traders need to pay attention to the long-term price targets at 161.8% and 261.8% Fibonacci levels, which are at $0.706 and $1.30, respectively.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Coingape. Did Elon Musk Kill Dogecoin’s Popularity? Will DOGE Price Recover as Investors Flee? Accessed on February 27, 2025