Dogecoin price could nosedive 25% as DOGE bulls exhaust

Dogecoin (DOGE) bulls have enjoyed their brief moment in the spotlight when Elon Musk decided to replace the Twitter logo with the Dogecoin dog. Thus far the publicity stunt has intrinsically added nothing substantial to DOGE itself. Some very short-term scalpers have enjoyed the move higher, but  with price action already tanking over 10%, it will not be long until Dogecoin price completely drops back to more normal levels with a 25% decline.

Dogecoin price has not seen substantial investor inflow with the Musk stunt

Dogecoin price had printed one of its best performances intraday on the 4-hour chart since October 2022, when the price jumped 29% on one Saturday. Although Musk probably had another motivation or reason for why he replaced the Twitter logo with the Dogecoin emblem, it attracted the wrong kind of people. Instead of seeing big investor inflow, scalpers jumped all over this and are now taking profit in full. 

DOGE sees these scalpers taking profit and departing the price action, not intending to return anytime soon. Expect to see more common traders begin taking profit as well and triggering another sell-off in DOGE. Although the monthly R1 at $0.085 could bear some support, rather look for $0.080 with both the 55-day and the 200-day Simple Moving Average (SMA) for support nearby.

DOGE/USD  4H-chart    

A revisit of $0.1050 could only happen if another catalyst comes into play and creates a similar move. That could be under the form of more substantial commitment from Musk toward Dogecoin, such as integrating it as a form of payment with Twitter. That would mean substantial usage and inflow in the price action with a quick revisit of that same $0.1050 level.