Dogecoin lost more than 55% of its value in the last year.
The reason behind the drop in Dogecoin's price is Elon Musk's falling net worth.
Elon Musk has now become the first person in history to lose $200 billion.
Experts predict that the token’s future looks quite gloomy.
Father Elon Musk and the token itself. The token has lost more than 55% of its value in the last year.
Since we know that Elon Musk's words and actions have a strong influence on the Dogecoin price, last year's analysis shows that the relationship between the two is growing even stronger.
This may also be seen in the fact that Elon Musk's net wealth dropped by $200 billion for its November 2021 peak, which has impacted the price of the token as well. Experts believe that if Musk's falling net worth streak continues in the next months, the year could be bearish for Dogecoin.
In January 2021, Elon Musk became the second person to amass a personal fortune of more than $200 billion, following Jeff Bezos. However, the Bloomberg Billionaires Index has shown that Tesla CEO Elon Musk is the first person in history to have lost $200 billion from his net worth.
Reports highlighted the continuous drop in Musk’s net worth is triggered by the falling prices of Tesla’s shares. In addition, Musk stated that the reason behind the falling net worth and Tesla's shares is the US FED's interest rate hikes.
Experts believe that Musk might lose more of his net worth in the times to come. This indicates that the falling net worth may have a greater impact on the price of Dogecoin in the future. Meanwhile, the Dogecoin community remains optimistic about the token's future.
As per macroeconomic indicators, the token's adoption and the price will skyrocket in the near future. The community anticipates Dogecoin to be integrated as a payment method in Twitter's upcoming payment mechanism, which will increase the popularity of the token even further.
Meanwhile, as per technical analysis, the token’s future looks quite gloomy. In terms of the US dollar, Dogecoin has fallen below the $0.070 support level. According to the daily chart pattern, a Head and Shoulder pattern will form.
The 24-hour price analysis of Dogecoin shows that it has been trading flat since the market opened today. The bulls and bears have been struggling for market control, but the bulls have reclaimed control and pushed prices up to $0.07040, which is close to the upper resistance line.
The 4-hour chart for Dogecoin price analysis reveals that the price is facing resistance from the top of the falling channel line, forming a minor bearish trend line that is currently acting as a resistance for the market. Over the last few hours, the prices haven’t made any significant move.
This indicates that the token is expected to continue sideways in the near term, with prices fluctuating between $0.06500 and $0.07200 in the coming days.
What do you think about the future of Dogecoin? Please share your valuable thoughts in the comment section below.
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