While Bitcoin is witnessing its breakthrough point after a gap of two years, Dogecoin has experienced a substantial drop of 4.5%. The massive drop is seen after Elon Musk’s urgency to testify once more for the complete acquisition of Twitter.
DOGE’s price is highly influenced by Musk, making it vulnerable to his social media speculations.
The price of Dogecoin has hit a hurdle at the 50-day Exponential Moving Average, showing that bulls are finding it difficult to break through this resistance level. This level is currently acting as a barrier, preventing any potential upward movements.
Additionally, the trading volume has been decreasing, indicating a possible consolidation phase or lack of interest.
However, speculations remain uncanny about the potential legal implications of Musk’s testimony. If Dogecoin is deemed a security, it may face strict regulations that impede its market performance and investor sentiment.
The rise of Dogecoin, which has been partly fueled by celebrity endorsements, underscores how regulatory scrutiny can impact crypto assets.
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