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Will Elon Musk Help Revive Dogecoin Price Slump?

Dogecoin price continues to experience turbulence, leaving investors cautious despite DOGE being one of the top meme coins to buy. Those with long-term investing horizons and who are willing to ride out the downs are still holding DOGE despite consolidating for 28 days now. However, as Dogecoin faces a significant price slump, all eyes are once again on Elon Musk, the influential tech mogul who has been a key driver of past rallies for DOGE. Known for his cryptic tweets and public endorsements, Musk’s influence on Dogecoin price is undeniable.

Recently, Musk hinted at the possibility of Tesla reintroducing Dogecoin as a payment option, potentially expanding its use beyond merchandise to more substantial transactions. With Musk’s history of boosting Dogecoin’s value through endorsements, the question remains: Can his latest actions help reverse the asset’s downward trend and reignite investor interest?

Dogecoin Price Q3 Performance Drops to 5-Year Low

DOGE price had a rough year. Despite surging 125% in the first quarter of 2024, the asset shed 42% of that profit in Q2. Dogecoin price is down 23.97% in this third quarter, but analysis suggests there might be a reprieve.

Data from CryptoRank shows Dogecoin performed worse in Q3 2024 than in the other Q3s in the last five years. The last time DOGE did this badly was in 2019, when it declined by 28.9%. The price of Dogecoin has gone down 1.6% in the last 24 hours and is trading at $0.097. 

Additionally, according to DYOR, the crypto narrative saw the fourth-largest drop in strength, meaning the market sentiment has shifted, leading to a decline in their performance – particularly Dogecoin.

Despite the poor Dogecoin performance in Q3, DOGE remains the ‘top dog’ in the meme sector, leading the pack by a $14.1 billion market cap. The next contender is Shiba Inu, which is about half that size. 

Further, a deeper analysis of the crypto memes coins sector on CoinGecko reveals that out of the top 10, dog-themed ones dominate, with six out of ten.

Will Elon Musk Help DOGE Price Recover In September?

Dogecoin price is currently courting the lower boundary of a consolidation zone, a dangerous situation to be in, given Bitcoin price current volatility.

Coinglass 30-day trading data reveals traders are overwhelmingly bearish on Dogecoin price, having opened $58 million worth of Shorts between $0.0985 and $0.1135. But what are the chances they could all be liquidated?

Scalpers (15 minutes) are aggressively entering longs, which means they are optimistic about Dogecoin’s price in the short term. On the 4-hour time frame, traders can be observed closing their Shorts, usually preceded by opening Longs. The monthly DOGE price outlook may change if this pattern can build up to the daily timeframe. 

Dogecoin Price Analysis Chart

In the short-to-medium term, DOGE price can increase by 17%, likely gradually due to the overwhelming sell pressure in the general crypto market.

Overall, September has begun on a negative note for the markets, but Dogecoin price prediction hints there may be further turbulence.

The post Will Elon Musk Help Revive Dogecoin Price Slump? appeared first on CoinGape.