The Dogecoin price took a brief breather on Thursday as Elon Musk continued fundraising for his Twitter acquisition. These gains were then undone as cryptocurrency, and stock prices plummeted in the overnight session. At the same time, both the CNN and Bitcoin fear and greed index moved to fear levels as worries about the Fed continued. DOGE is trading at $0.12, 30% below its highest level in March.
On Thursday, it was reported that Elon Musk had managed to attract a number of buyers for his deal to acquire Twitter. Some of the most notable participants in his pursuit are Binance and Larry Elison. This means that he will reduce the amount of money he has to pay for the company. However, the deal still has risks since his net worth has crashed recently.
According to Bloomberg, Musk is now worth $249 billion, which is $21.1 billion below where he started the year. This is notable simply because the deal is funded partly by loans secured by his Tesla shares. If they keep falling, banks could exit the deal before it is closed. The Twitter buyout is important for Dogecoin since Musk has pledged to implement it on the popular platform.
Dogecoin price also plummeted because of the rising fears about the FOMC. On Wednesday, the bank decided to hike interest rates and signal that it will start implementing quantitative easing (QE) policies. As a result, the Nasdaq 100 and Dow Jones fell by more than 4%.
The four-hour chart shows that the DOGE price declined sharply on Friday. The lowest price was notable since it was the lowest level since May 1 and April 25th. The coin has also moved slightly below the 25-day and 50-day moving averages, while the Relative Strength Index (RSI) has moved slightly below 50.
While there are signs to worry about, the price is a bit safe as long as it is above the support at $0.1245. A move below this level will signal that bears have prevailed, which will push it lower to about $0.10.
This post was last modified on May 06, 2022, 08:01 BST 08:01