Elon Musk's latest hint about sending Dogecoin to the moon generated brief excitement but ultimately failed to sustain any meaningful price movement. The cryptocurrency saw an initial 4% jump on Tuesday before erasing all gains and closing down approximately 5% for the day. The decline did not stop at Tuesday's 5% loss. Dogecoin has continued sliding in subsequent trading sessions, extending the bearish trend. At the time of writing, the token trades at around $0.09085, following a 10.87% decline over the last 24 hours. This breakdown triggered the anticipated panic-selling wave. DOGE has tested the $0.08- $0.09 range that analysts warned could become the next support zone. Trading volume increased during the selloff, confirming genuine selling pressure rather than low-liquidity volatility. DOGE initially outperformed Bitcoin and Ethereum in early trading hours. The enthusiasm proved fleeting as broader cryptocurrency weakness pulled meme tokens lower. Shiba Inu followed a similar trajectory, dropping roughly 9.5% in the last 24 hours despite no direct connection to Musk's comments. Market Fatigue Sets In The muted response signals potential exhaustion with Musk-driven cryptocurrency rallies. Past tweets and statements from the billionaire entrepreneur previously sparked significant price movements in Dogecoin. This time, traders showed little sustained interest. Dogecoin currently trades at a critical $0.10 support level. Breaking below this psychological threshold could trigger widespread selling pressure. Analysts project potential downside to the $0.08-$0.09 range if support fails. The token sits beneath all major exponential moving averages. The 20 EMA stands at $0.11988, while the 50 EMA reaches $0.13044. The 100 EMA extends to $0.14650, and the 200 EMA hits $0.16834. This layered resistance creates substantial obstacles for any recovery attempt. Technical traders refer to this formation as a ”death zone” of resistance. Each level presents sellers with opportunities to exit positions. The descending trendline intersecting around $0.12-$0.13 adds another barrier to upward movement. The Parabolic SAR indicator at $0.11916 confirms the downtrend continues. This technical signal suggests selling pressure maintains control over price action. Bulls need significant buying volume to reverse the current momentum.
Why tokenized assets aren’t liquid (yet)
