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Dogecoin has fallen 75% against Bitcoin since Elon Musk’s SNL appearance.

Dogecoin (DOGE) may return to the top 10 cryptocurrencies by market capitalization, but the arrival of Elon Musk’s SNL has led to heavy losses for both the US dollar and Bitcoin (BTC).

Dogecoin loses musk effect

The DOGE/BTC trading pair has fallen 75% after peaking at 1,287 satoshis on May 9, 2021. This comes just a day after Musk guest-hosted him on Saturday Night Live, which included a sketch titled “The Dogefather.”

DOGE/BTC daily chart.Source: Trading View

Before his arrival, the billionaire entrepreneur relentlessly tweeted Dogecoin memes and images. This allows DOGE (a cryptocurrency that started as a joke) to reach a market cap of over $90 billion in May 2021.

That’s an increase of over 36,000% in just two years. But since then things have gone from bad to worse.

Investors reflected the hope that even Musk’s optimistic wink at DOGE on SNL would encourage his 106 million followers to buy the meme token. But Musk did something unexpected. He called his Dogecoin “Hustle”.

A day later, DOGE’s price began to fall from its all-time high. It continues its downtrend to date, changing hands at around 300 satoshis against a peak value of 1,287 satoshis.

At the same time, the Dogecoin price has fallen more than 90% against the US dollar after peaking at $0.76 in May 2021.

Elon Musk Efforts To Keep Dogecoin Relevant

Since then, Musk has made various efforts to revive people’s interest in Dogecoin.

In May 2021, he clearly Since 2019, he has been working with Dogecoin developers to improve blockchain transaction efficiency. Additionally, Musk’s Tesla and SpaceX have also started accepting doge payments for goods, prompting a sharp but short-term price increase.

Additionally, Musk said he would not sell his crypto holdings, including DOGE and Bitcoin, in the event of the March 2022 market crash. Nevertheless, Tesla sold his 75% of the Bitcoin he held three months after Musk’s declaration.

Prospects of adding a DOGE payment option to Twitter also collapsed after Musk backed out of buying the social media giant.

In September 2022, Tesla will launch the Cyber ​​Whistle, a limited-edition collectible inspired by Cybertruck vehicles. Users can only purchase with Dogecoin.

So will Dogecoin bounce back?

Due to Musk’s half-hearted reaction to recent DOGE-related updates, traders have begun to ignore Musk’s high-profile relationship with Dogecoin.

Instead, traders have recently appeared to focus primarily on the Federal Reserve’s successive rate hikes that have put downward pressure on cryptocurrencies, stocks and similar risk-on assets beyond 2022.

Related: Dogecoin Becomes Second Largest PoW Cryptocurrency

The technical setup suggests the same. For example, on the weekly chart, DOGE/BTC is currently testing 307 satoshi as interim support given the level’s history as a strong price floor since November 2021.

DOGE/BTC weekly price chart.Source: Trading View

A break below 307 satoshis would see DOGE/BTC test the 200-week exponential moving average (200-week EMA, blue wave) near 244 satoshis as a 2022 downside target. This is a drop of 20%.

40% drop against the dollar

The DOGE price has been trending within a broad descending channel against the USD since it peaked in May 2021 and is now eyeing the lower trendline as the next downside target.

DOGE/USD weekly chart.Source: Trading View

The target appears to be within the range defined by $0.048 and $0.036. These levels of history are shown as support. Therefore, DOGE could fall about 40% against the dollar in Q4 2022.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. All investment and trading movements involve risk. You should do your own research when making a decision.