DogecoinDogecoin price analysis hints at a 30% drop despite Tesla CEO Musk’s bid to buy Twitter.

Dogecoin is a cryptocurrency, also called DOGE.  It is considered an altcoin and an almost sarcastic meme coin. DOGE was generally considered to be an amusing meme coin beloved by its community but with relatively little value. The market assigns DOGE a value based on supply and demand. The Head-and-Shoulders (H&S) pattern emerging on DOGE charts suggests a lack of upside conviction among Dogecoin traders. The DOGE price fell last week following Elon Musk’s bid to buy Twitter appears to be fizzling out, with Dogecoin closing the week over 8% higher. Dogecoin’s price dropped to $0.142 from $0.149.

Evolution of Dogecoin:

The digital currency based on a meme Dogecoin has continued to capture public attention as Tesla CEO Elon Musk. Dogecoin now ranks as one of the top 10 digital coins by market value, according to CoinMarketCap with a total value that has topped $50 billion, even though each individual coin is worth pennies.

Dogecoin started in 2013 as a joke between two engineers Billy Markus and Jackson Palmer. DOGE is intentionally abundant with 10,000 new coins mined every minute and no maximum supply. With the vast and ever-growing supply, demand has had to surge enormously to drive the values of Dogecoin as high as. Part of what made Dogecoin funny is that it was a full-fledged cryptocurrency, with its own blockchain and a mining system similar to the one used by Litecoin. Tesla’s CEO has been actively tweeting about the DOGE since its copycat rally to GameStop.

Dogecoin Falls Out of Musk's Hand:

Dubbed H&S the pattern appears when the price forms three peaks in a row, with the middle one between the other two, which are of almost equal height and are called the shoulders. These 3 peaks hold above a common support level is the neckline. The DOGE now could drop to the neckline after forming its right shoulder, followed by a full-fledged bearish breakout.

As a result, DOGE will correct toward its Head-and-Shoulders neckline near $0.132, down about 7.5% below April 17’s price. The level coincides with DOGE’s 50-day simple moving average, thus providing additional support. DOGE correction, albeit modest, increased the potential to trigger a classic bearish reversal pattern with an 85% success rate of reaching its downside target.

The news of Tesla CEO Elon Musk buying a 9.2% stake in Twitter on April 4 helped boost Dogecoin price by more than 20% to $0.174 a day after, its best level in almost three months, only for Dogecoin price to rebound again after Musk showed intentions to acquire Twitter in its entirety for $43 billion.

Elon Musk growing influence on Twitter could boost DOGE adoption and price. Their sentiment was furthered by Robinhood CEO Vladimir Tenev, who earlier this week said Dogecoin could become the currency of the internet. Musk has supported the idea, suggesting that Twitter’s board introduce a DOGE payment option for its Twitter Blue monthly subscription service.