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Dogecoin (DOGE) Price Tumbles as Twitter Halts Work on Crypto Wallet

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VOC, Voice of Crypto, DOGE

Key Insights

  • Over the last day, the price of Dogecoin has plunged by more than 10%.
  • It is one of the worst-performing crypto assets of the top 100 in the last 24 hours.
  • As expected from the reactions of Dogecoin to news regarding Musk, Dogecoin somersaulted and sank by 11%.

Dogecoin, the star of last week’s micro bull run, has run out of steam and joined in the retracement as the market cools off.

Over the last day, the price of the dog-themed memecoin DOGE has plunged more than 10% and is already one of the worst-performing crypto assets of the top 100 in the last 24 hours.

Chart showing price decline on Dogecoin over the last day, VOC, Voice of crypto

Chart showing price decline on Dogecoin over the last day | Source: CoinMarketCap

Dogecoin soared past several other cryptocurrencies last week, following the news of the world’s richest man and Dogecoin supporter, Elon Musk buying Twitter, the social-media giant.

However, the hype around Twitter’s acquisition seems to be dying and dragging the price of Dogecoin down. Investors, it appears, are starting to take profits on Dogecoin trades.

Twitter Reportedly Halts Plans on Crypto Wallet

Right after the Elon Musk Twitter takeover in October, DOGE more than doubled, spurred on by hopes that the business tycoon would implement cryptocurrency-friendly changes at the company.

As reported by Jane Manchun, the tech blogger, in October, Twitter was working on its wallet prototype.

Twitter was also working on a Bitcoin tipping feature sometime in September 2021, adding support for Ethereum in February after its former CEO, Jack Dorsey, stepped down.

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According to a report by Platformer, as part of ongoing adjustments initiated last week by the social media giant’s new owner, Twitter has paused plans to develop its cryptocurrency wallet.

As expected from the reactions of Dogecoin to news regarding Musk, Dogecoin somersaulted and sank by 11%.

Even before fully buying and taking over the social media platform, Musk repeatedly left hints at potentially integrating the memecoin into the platform. Except that now, the Dogecoin-Twitter integration is starting to look like a theoretical possibility at best.

Dogecoin Price Action

After roaring past the $0.11 resistance last week and causing millions of dollars in short trade liquidations last week, Dogecoin finally hit $0.16. It dominated the crypto-gainer ranks for the rest of the week.

However, the cryptocurrency now appears to be weakening in its bullish momentum.

Chart showing weakening price momentum and retracement on Dogecoin, VOC, Voice of crypto

Chart showing weakening price momentum and retracement on Dogecoin | Source: Tradingview

After hitting the $0.15 high, Dogecoin reversed for a retest of the $0.11 zone. After what looked like a bounce and further bullish movement, Dogecoin managed to hit $0.16. However, the bears managed to take control again, and the cryptocurrency has reversed for a second retest of the crucial $0.11 zone.

Chart showing potential movement around the crucial $0.11 support 

Chart showing potential movement around the crucial $0.11 support | Source: Tradingview

So far, the $0.11 zone is a crucial one to watch. If Dogecoin manages to break below this level, the drop that results may take the cryptocurrency’s price straight to the $0.06 zone it sat at before last week’s bullishness.

Chart showing bearish crossover on RSI, VOC, Voice of crypto

Chart showing bearish crossover on RSI  | Source: Tradingview

Despite the retracement, the RSI on the daily chart still shows overbought conditions and is even on the verge of a bearish crossover. This is an especially bearish sign and indicates that Dogecoin may be near or at the end of its bullish momentum.

Disclaimer: Voice of crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

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Adekunle Joshua is a cryptocurrency writer. He has a deep understanding of the technology and how it can be used to improve the world. James is a strong advocate for using cryptocurrency to make the world a better place. He wants to help people understand the technology and use it to improve their lives.

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