Dogecoin’s price is declining and is currently trading near its lowest level since November last year. The downturn is driven by investor concerns following Donald Trump’s implementation of sweeping tariffs. Additionally, market fears have intensified due to the rising probability that Elon Musk may step away from Department of Government Efficiency (D.O.G.E.).
Elon Musk’s Potential Exit Fuels Market Uncertainty
Polymarket data indicates that traders increasingly believe Musk will exit his role in the Dogecoin ecosystem this year. A poll with over $131,000 in assets suggests that the likelihood of his departure has risen to 77%, up from 55% on April 1.
This shift in sentiment follows a democratic judge winning a crucial seat in Wisconsin, which was seen as a political setback for Musk. Furthermore, Tesla’s stock has faced severe pressure, declining by over 40% this year, leading to a market value loss exceeding $1 trillion.
The probability of Musk leaving Dogecoin has been linked to Tesla’s stock recovery. Analysts speculate that stepping away from Dogecoin could allow him to concentrate fully on Tesla and other business ventures.
Technical Analysis Signals Potential Rebound
Technical analysis shows that Dogecoin might become stronger even though its price has decreased. A market analyst forecasts that if it holds its current $0.15 support level for the long term, Dogecoin will experience a 250% rise.
Dogecoin shows a double-bottom pattern forming at $0.1440 on its daily chart, while the neckline stands at $0.2058. Such configurations of candlestick patterns often indicate potential upward price changes. A falling wedge formation emerged on the cryptocurrency which frequently acts as a sign pointing towards price gains.
The Bollinger Band Trend (BBTrend) indicator shows bullish divergence that adds more evidence for a price recovery. Despite the fragile market sentiment, price movements will mostly depend on external elements including future decisions from Musk.
Dogecoin Price Targets and Market Outlook
The predicted price direction of Dogecoin continues with a potential small drop toward $0.1441, followed by a rebounding phase. The technical analysts show that price levels exceeding current resistance points may propel Dogecoin price to reach its 50% Fibonacci retracement target at $0.2820, which would reflect an 80% gain from the present market position.
The bullish projection may become invalid by any price decline below $0.1441 support which would lead to an increased possibility of market movement toward $0.10. The market remains attentive to price changes because investors are unsure about Musk keeping his role as CEO of SpaceX.
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