A fictional event titled that Elon Musk announced his withdrawal from supporting DOGE:
Technical and economic analysis - #ElonMuskDOGEDeparture
Event:
In a surprising tweet, Elon Musk announced his cessation of support or promotion for Dogecoin (DOGE), considering it time to focus on more 'sustainable' projects.
This seemingly simple statement shook the market and ignited panic among the memecoin community.
Technical analysis:
Time frame: 4H and 1D
Candles: Strong decline with a 'Bearish Engulfing' candle on the daily frame.
Support areas:
$0.085: It was easily broken.
$0.073: Attempt at a rebound, but liquidity is weak.
Indicators:
RSI:
Dropped to 31 - approaching the area
Oversold.
MACD:
A clear negative intersection, with additional downward space available.
Volume:
A sudden jump in trading volume reflects a state of 'panic selling'.
Short-term technical forecast:
Continued decline with temporary rebound possibilities from strong support areas, but the overall trend is negative.
Economic analysis:
1. Musk's impact on DOGE
The value of DOGE has always been linked to community trust, and one of the biggest trust factors was Musk's support.
His withdrawal is akin to pulling 'symbolic capital' from the project.
2. The economic weakness of the DOGE currency
It still does not possess strong use cases or clear technical development today.
The absence of an influential figure like Musk exposes those weaknesses.
3. Market reaction
Short-term investors (speculators) disposed of the currency immediately.
Major whales may have exploited the panic to buy at low prices.
4. Potential effects
A decline in user confidence will lead to a decrease in trading volume.
We might see liquidity shift to competing memecoins like SHIB or more serious projects.
✍️ Summary
What happened is not just an emotional event, but a real artistic and economic shock that reveals the fragility of the project.
Unless the community intervenes or a strong new supporter appears, DOGE is threatened with entering a long recession phase or gradual disappearance from the forefront.