After exploding to the rise and setting new all-time highs in anticipation of the event, the appearance of Elon Musk - the self-proclaimed "Dogefather" - on the US TV show "Saturday Night Live", made s 'collapse the Dogecoin.
While the DOGE yesterday morning marked a new high at $ 0.7380, and it moved towards $ 0.66 at the time of the start of the issue, the cryptocurrency fell to a low towards $ 0.48, a drop of around 35 % since yesterday's peak.
Still, Musk mentioned dogecoin in his opening monologue and on "Weekend Update," SNL's satirical news show.
Musk then explained cryptocurrencies in general to the audience on the NBC show, before hosts Michael Che and Colin Jost repeatedly asked him "what is dogecoin."
In a question-and-answer session with hosts Michael Che and Colin Jost, Musk dubbed himself the “Dogefather,” said the dogecoin was a “scam,” and yelled “To the moon,” a phrase from hook popular among dogecoin enthusiasts aiming for the $ 1 goal.
Finally, in the show's final sketch, Musk joked about creating a new currency, based on "whatever I say," before the show (briefly) explains the fiat money system.
Why has Dogecoin fallen ?
Elon Musk was widely anticipated to bring up Dogecoin. This is the main reason for the crazy rise in cryptocurrency over the past 10 days. Recall that it was only worth $ 0.30 at the beginning of the month.
So it appears traders have 'sold the news' after 'bought the rumor', a phenomenon well known to investors when widely anticipated events support sentiment on a particular asset.
It can also be noted that some observers believe that the fact that Musk referred to Dogecoin as a scam, jokingly, may have weighed on Dogecoin.
What is the technical situation of Dogecoin after this correction?
Dogecoin broke below several key thresholds including $ 0.60 and $ 0.55 and even made a brief foray below $ 0.50 significantly weakening its bullish profile.
However, the 200 hour moving average, currently at $ 0.5215, and an uptrend line visible from late April in daily data and currently around $ 0.50 appear to have halted the decline for now.
If these thresholds are kept, the correction could end there. If a breakout below $ 0.50 is confirmed, the balance will more clearly tilt in favor of the downside with a potential first target at $ 0.45.
