The highly anticipated biography of Elon Musk, scheduled to be released on September 12, has revealed surprising revelations about the billionaire’s role in the cryptocurrency world, particularly with Dogecoin. According to a report by the Wall Street Journal, Musk has been discreetly funding the development of Dogecoin, shedding light on his significant influence on the meme coin’s popularity. These revelations provide new insights into the suspicions that Musk’s comments on Dogecoin have influenced its market dynamics.
Walter Isaacson’s biography also uncovers Musk’s contemplation of launching a blockchain-based social media platform with integrated payments. The concept was proposed by Musk’s brother, Kimbal, who suggested creating a completely new social media platform built on blockchain technology. Interestingly, Musk even humorously entertained the idea of utilizing Dogecoin as the platform’s payment system. However, Musk clarified that X, the rebranded version of Twitter that he acquired for $44 billion, would never introduce its own token.
Another intriguing aspect mentioned in the biography is a failed investment proposal by Sam Bankman-Fried, former CEO of the insolvent crypto exchange FTX. SBF reportedly presented a $5 billion investment offer to support Musk’s acquisition of Twitter. However, following FTX’s collapse, Musk clarified that neither he nor Twitter had accepted investments from SBF or FTX.
Despite the revelations from Musk’s biography, Dogecoin’s price trajectory seems to be unaffected. Currently trading at $0.0633, DOGE’s price movement on the 4-hour chart shows a sideways trend in the lower time frame (LTF), oscillating between the 23.6% ($0.0626) and 38.2% Fibonacci retracement levels ($0.0667).
However, a closer look at the higher time frame (HTF), the 1-day chart, presents a different picture. Since December of the previous year, Dogecoin’s price has been trapped in a persistent downtrend, characterized by a descending trend channel. Despite experiencing a brief bounce off the upper trendline in late July, DOGE has continued its steady decline.
The breach of pivotal support levels, including the 200-day EMA, raises concerns about potential bearish momentum. Based on the current chart patterns, there is a looming possibility that DOGE might retest its annual low at $0.05593. In a more pessimistic scenario, a descent to the lower boundary of the descending channel around $0.05 seems possible.
However, if DOGE can robustly defend its current price level, it might present a lucrative entry point for prospective investors. For a significant price rally to materialize, it will be crucial for DOGE to rebound from this potential new low with substantial buying volume, setting its sights on a price target above $0.058.
The upcoming biography of Elon Musk unveils previously unknown aspects of his involvement in the crypto world, specifically his discreet funding of Dogecoin development. Despite these revelations, Dogecoin’s price remains relatively unaffected. However, a closer analysis of its price trajectory raises concerns about potential bearish momentum and suggests possible price targets for the cryptocurrency. Nevertheless, for prospective investors, a successful defense of its current price level could present an enticing opportunity. As Elon Musk continues to make waves in the cryptocurrency space, his influence and role will undoubtedly continue to be scrutinized and analyzed.
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