- Elon Musk, billionaire investor revealed that Shiba-Inu-themed cryptocurrency Dogecoin can be used to buy merchandise on both Tesla and SpaceX.
- Despite the catalyst, analysts believe the Dogecoin price could fail to recover from its recent slump and identify $0.0637 as the short-term target.
- Analysts identify signs of capital rotation in Dogecoin, and believe recovery in Dogecoin is less likely.
Elon Musk’s recent tweet about accepting Dogecoin payments at SpaceX failed to trigger a rally in the Shiba-Inu-themed meme coin. Proponents believe DOGE could struggle to recover from its downtrend in 2022.
Dogecoin fails to make come back
Elon Musk, the billionaire founder and CEO of Tesla and SpaceX, who is popular by his self-proclaimed title of “Doge Father,” made a new announcement about Dogecoin. Musk informed the community that Dogecoin payments will now be accepted in exchange for merchandize on both Tesla and SpaceX.
Users would make Dogecoin payments through their wallet and purchase merchandise across these platforms. The billionaire CEO of SpaceX has made his choice of Dogecoin as payment clear, opening up the gates across shops in his projects.
Tesla merch can be bought with Doge, soon SpaceX merch too
— Elon Musk (@elonmusk) May 27, 2022
@Mangyek0, leading cryptocurrency analyst at FXStreet, argues that capital rotation is ongoing in the crypto ecosystem. The analyst argues that investors’ mindset towards Dogecoin has changed.
the fact that $DOGE did not pump despite this clear mention from Musk is a testament to the capital rotation that's happening and the investors' mindset.https://t.co/7V9dZ7MKbU https://t.co/axzQyDGbFk
— Akash (@Mangyek0) May 27, 2022
Poor adoption of Dogecoin across global businesses
Analysts argued that new announcements and a boost in utility of Dogecoin could push the meme coin’s price higher. However, bullish drivers have failed to trigger a rally in the meme coin’s price.
A key factor in bearish sentiment on the meme coin is poor adoption by businesses. Motley Fool, a financial advice firm, recently revealed that 1300 business across the globe accept DOGE.
While 36% of the United States’ small businesses accept Bitcoin, Dogecoin is struggling with a boost in its adoption. The hype built around Dogecoin adoption has sustained to drive a price rally in DOGE.
Michelle Jongbloets, a crypto YouTuber and analyst, evaluated the Dogecoin price chart and noted that the DOGE price is retracing. The analyst argues that it is alarming to see a 20-day moving average and 50 day moving average closing in. Dogecoin price is currently well above the two moving averages, however, a crossover could confirm a bearish phase in DOGE.
DOGEUSD chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.