Dogecoin price continued its remarkable sell-off as concerns about Elon Musk’s Twitter acquisition emerged. DOGE slipped to a low of $0.057, which was the lowest level this week. It has fallen by more than 92% from its highest level in 2021. Other meme coins like Tamadoge, Saudi Shiba Inu, and Dogelon Mars also crashed.
Elon Musk’ Twitter deal in question
There are emerging concerns about whether Elon Musk will conclude his deal to acquire Twitter. According to Bloomberg, Joe Biden’s administration is considering conducting a review of the deal due to national security concerns.
Officials are concerned about Musk’s efforts to solve the Russia-Ukraine crisis. In tweets, Musk has advocated for UN-backed referendums in parts of Ukraine on joining Russia. He also warned that he could stop offering Starlink internet services in Ukraine.
Most importantly, the deal involves some funding from Saudi Arabia, Qatar, and China. As such, there is a likelihood that the administration will stop the deal. Such an outcome will be positive for Musk, who believes that he is overpaying for Twitter.
Another thing that could complicate the issue is a report that Musk plans to lay-off about 75% of all Twitter employees. Such a move will leave it with about 2,000 employees.
Meme coins like Dogecoin, Shiba Inu, and Tamadoge tend to react to actions by Elon Musk. For one, he came out in support of Dogecoin in 2021, which helped it go mainstream. He still has some Dogecoin investments.
At the same time, Musk has said that he will introduce Dogecoin into Twitter’s ecosystem. Some analysts believe that some of those measures could lead to more demand for the coin.
Dogecoin price also crashed because of the ongoing crypto weakness. Bitcoin moved below $19,000 while the total market cap of cryptocurrencies dropped to about $901 billion.
Dogecoin price prediction
The daily chart shows that DOGE has been in a strong downward trend in the past few days. As it dropped, the coin managed to move below all moving averages while the Relative Strength Index (RSI) has moved below the neutral point. The coin has also formed a small head and shoulders pattern,
In price action analysis, this pattern is usually a bearish sign. Therefore, the coin will likely have a bearish breakout as sellers target the key support level at $0.050. A move above the right shoulder at $0.066 will invalidate the bearish view.
