Dogecoin Falls by 4% as Elon Musk Hype Fades
Dogecoin is down 4.02% to $0.104 in 24h, underperforming a declining broader market and primarily driven by a high-volume sell-off breaking key technical support.
The price slump followed a sharp gain recorded at the weekend. Dogecoin rode a wave of weekend momentum, fueled by Elon Musk’s latest X announcement and cooling inflation data.
Elon Musk announced via video that X will soon allow users to trade stocks and digital assets directly from their timelines.
The beta, powered by X Money, is expected in one to two months. While Musk didn’t mention Dogecoin specifically, his historical association with the meme coin was seen as a key catalyst for its price jumping from $0.095 to over $0.115.
Dogecoin surged up to 21% over the weekend, with trading volume spiking 191% to $2.87 billion.
The rally was triggered by a U.S. Consumer Price Index (CPI) report showing inflation fell to 2.4% in January, nearing the Federal Reserve’s 2% target and boosting expectations for interest rate cuts
On Sunday, the price broke below the key 61.8% Fibonacci retracement level at $0.10401, which had acted as support, triggering further downside.
Trading data shows no specific news, partnership, or ecosystem catalyst to explain the drop. The broader crypto market fell 2.42%, but Dogecoin’s 4% decline represents significant underperformance versus Bitcoin (-1.93%).
The immediate trigger is whether Dogecoin can defend the $0.10 support level. If it holds, a rebound toward the 50% Fibonacci level at $0.11094 is possible. However, a break below $0.10 opens the path toward the recent swing low of $0.08157.
Dogecoin faces sustained selling pressure, confirmed by high volume and a break of key technical support. Dogecoin’s current trajectory is being shaped by a potent mix of celebrity-driven hype, macroeconomic tailwinds, and foundational ecosystem building. Tech Stocks Selloffs Dominate Headlines in Global Equities Markets
