Elon Musk, the billionaire tech entrepreneur, has been making headlines in the crypto world for his involvement with Dogecoin. With the upcoming biography set to be published on September 12, new revelations about Musk’s discreet funding of Dogecoin’s development have come to light. This article delves into the untold story of Musk’s relationship with Dogecoin, exploring the impact of his involvement on the popularity of the meme coin.
The biography uncovers the fact that Musk has been quietly funding the development of Dogecoin. This revelation sheds light on the significant influence Musk has had on the meme coin’s popularity. Musk’s comments on Dogecoin, often shared on social media platforms like Twitter, have been suspected of swaying its market dynamics. In fact, earlier this year, Musk faced a class-action lawsuit accusing him of insider trading and artificially inflating the cryptocurrency’s price. Musk, however, maintained that his tweets in support of Dogecoin were not illegal.
The biography also reveals Musk’s consideration of launching a blockchain-based social media platform with integrated payments. The idea was suggested by his brother Kimbal, who proposed a completely new social media platform based on blockchain technology. Interestingly, Musk jokingly contemplated using Dogecoin as the platform’s payment system. However, it should be noted that Musk recently clarified that X, the rebranded version of Twitter which he acquired for $44 billion, would “never” introduce its own token.
The biography delves into a failed investment attempt by Sam Bankman-Fried (SBF), the former CEO of the insolvent crypto exchange FTX. SBF had reportedly proposed a $5 billion investment to aid Musk’s acquisition of Twitter. However, following the collapse of FTX, Musk clarified that neither he nor Twitter had ever accepted investments from SBF or FTX. This revelation highlights the challenges and complexities that come with high-profile business endeavors.
Despite the intriguing revelations from Musk’s biography, Dogecoin’s price trajectory seems to remain unaffected. Currently trading at $0.0633, DOGE’s price movement on the 4-hour chart indicates a sideways trend in the lower time frame (LTF), oscillating between the 23.6% ($0.0626) and 38.2% Fibonacci retracement levels ($0.0667).
However, a closer look at the higher time frame (HTF), specifically the 1-day chart, presents a different picture. Dogecoin’s price has been ensnared in a persistent downtrend since December of the previous year, characterized by a descending trend channel. Despite a brief bounce off the upper trendline in late July, DOGE has continued its steady decline.
Pivotal support levels, including the 200-day EMA, have been breached, signaling potential bearish momentum for Dogecoin. Based on the current chart patterns, there is a looming possibility that DOGE might retest its annual low at $0.05593. In a more pessimistic scenario, a descent to the lower boundary of the descending channel, approximately at $0.05, seems possible.
Nevertheless, if DOGE manages to staunchly defend its current price level, it might present a lucrative entry point for prospective investors. For a significant price rally to materialize, it is crucial for DOGE to rebound from this new potential low with substantial buying volume, setting its sights on a price target above $0.058.
The upcoming biography of Elon Musk unveils previously unknown facets of his involvement in the crypto world, particularly with Dogecoin. From quietly funding its development to considering a blockchain-based social media platform, Musk’s influence on the meme coin’s popularity cannot be denied. Despite the revelations, Dogecoin’s price continues to exhibit a bearish trajectory. However, if DOGE can defend its current price level and gather buying momentum, there may be opportunities for investors. The story of Musk and Dogecoin is a fascinating one, highlighting the intertwining nature of technology, finance, and popularity in the world of cryptocurrencies.