September 3, 2021
dogecoin illustration

Doggone! Dogecoin Drops More Than 30%

 Dogecoin holders lucked out on Saturday after the meme coin dropped 10% following Elon Musk's appearance on Saturday Night Live.

DOGE was expected to get another boost -- one like Guy Fieri's "to the moon" tweet on Monday -- during the sketch comedy show from its wealthiest fan. But instead of shooting to the moon, the coin dropped immensely, really immensely. In the over-an-hour-long program, Dogecoin shed off as much as 38% and now has found itself trading at $0.55667, as of writing.

Dogecoin was the leader of an altcoin rally this year, with a price change of over 20,000% at one point, overshadowing the market's most popular asset, Bitcoin. BTC still has been a solid bet this year with a 98% gain, but it certainly lost the spotlight to its rivals.

This is because Dogecoin's ridiculous price appreciation is just too hard to ignore, especially when everyone seems to be on the same bandwagon.

Still, Saturday's selloff was the most significant one for Dogecoin yet. The massive drop dislodged the crypto from its top gainer status of 2021, which now belongs to Telcoin.

Initially, fans targeted a $1 price tag for DOGE with other predictions that run as high as $100 -- which is probably too farfetched given the present circumstances.

And after collapsing from a high of $0.76047099 even with its "Dogefather" doing his best to maintain the hype, could that be the top where fans realize the true worth of the asset they got into?

Technical Picture

The distance between DOGE and the 50-day moving average widened on Sunday. If the crypto were to get there, that would mean 144% of Dogecoin's value will have to be sloughed off.

Over at the 4-hour chart, the 50-period moving average has already been breached but the price made a strong recovery on Sunday and manage to surface slightly above the indicator.

The next possible support is at the 100-day moving average, which coincides with a trendline drawn from last month. Dogecoin nearly grazed that price point before recovering to its current price.

dogecoinusd chart

After the dip to 0.41756065, Dogecoin has reclaimed about 35% of what it lost. If the price can hold above the 50-period moving average at least on the 4-hour chart, it's a positive sign for the bulls.

Elon Musk

Heisenberg Media, CC BY 2.0 , via Wikimedia Commons

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