Dogecoin (DOGE) price falls despite Elon Musk's support - What's causing the decline?

Dogecoin (DOGE) price starts to fall despite Elon Musk’s influence

Dogecoin is no longer pretending!

The price of Dogecoin first reacted to Elon Musk in 2021 and has since been associated with the Tesla founder. The bond has weakened over the last year as Musk's interest shifted from DOGE to artificial intelligence.

This week, however, the DOGE community rejoiced as Musk continued to speak out in support of the memecoin. During a meeting at Tesla’s Berlin Gigafactory, Musk said Dogecoin would be used as a payment method for Tesla purchases. He went on to call Dogecoin “the people’s cryptocurrency.”

Surprisingly, this did not have any impact on the price of Dogecoin or even prevent its decline. DOGE will initiate a downtrend due to broader market cues.

Bitcoin price has fallen significantly over the past 24 hours, and Dogecoin price has followed the same trend. Since the correlation between meme coins and BTC is as high as 0.89, it is directly affected.

Furthermore, the cryptocurrency has not received support from investors, who have started to pull back as the bullish momentum wanes. The number of addresses that have been transacting on the network has dropped significantly.

The bullish community did not contribute to actual activity on the chain, causing active addresses to fall to four-week lows.

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标签：doge dogecoin musk