DOGE Tumbles by 12.9% as Investors Await Musk’s DOGE Plans for Twitter

Key Insights:

• DOGE tumbled by 12.9% on Tuesday, with the reversal seeing DOGE fall back out of the crypto top 10 by market cap.
• A lack of Elon Musk chatter underwhelmed DOGE holders, with investors now looking for Musk’s next big input.
• Technical indicators have turned bearish, with DOGE sitting below the 200-day EMA.

In a bearish session for the broader crypto market, a lack of Elon Musk commentary on DOGE left DOGE in the deep red on Tuesday.

Following news of Twitter accepting Elon Musk’s bid on Monday, investors likely considered the lengthy process for Musk to take Twitter control.

On Tuesday, DOGE slumped by 12.9%. Partially reversing a 19.9% breakout from Monday, DOGE ended the day at $.1377.

DOGE Investors Face a Long Twitter Buyout Process

As the dust settles from Elon Musk’s hostile takeover of Twitter, a long process now awaits Twitter and DOGE investors.

Not only do shareholders need to vote on the buyout, but regulators in countries that Twitter does business in will also need to give their seal of approval.

For Musk, the regulatory reviews should be smooth sailing, with there being no reason for regulators to be concerned with antitrust or competition within the social media space.

None of Musk’s existing companies are social media related.

As things stand, the markets anticipate Twitter to be in Musk’s hands later this year. For DOGE investors, that is a long lead time before Musk can exert some DOGE favorable influence.

In the meantime, we do expect DOGE to be hypersensitive to any Musk comments, however.

DOGE Price Action

At the time of writing, DOGE was down 0.80% to $0.1366.

Technical Indicators

DOGE will need to move through the $0.1466 pivot to target the First Major Resistance Level at $0.1576.

DOGE would need the broader crypto market to support a return to $0.15.

An extended rally would test the Second Major Resistance Level at $0.1775 and resistance at $0.18. The Third Major Resistance Level sits at $0.2084.

Failure to move through the pivot would test the First Major Support Level at $0.1267. Barring another extended sell-off, DOGE should steer clear of sub-$0.12 levels. The Second Major Support Level sits at $0.1157.

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bearish signal. DOGE sits below the 200-day EMA at $0.1397. This morning, the 50-day converged on the 100-day EMA. The 100-day EMA narrowed to the 200-day EMA, DOGE negative.

A bearish cross of the 50-day EMA through the 100-day EMA would bring $0.12 levels into view.