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Dogecoin, which was formerly favored by social media influencers and regular investors, has been having difficulty sustaining a significant rebound, which has prompted a negative reaction in the communtiy. Notable people like Elon Musk have occasionally endorsed Dogecoin, but the cryptocurrency has not taken off as it once did.
The community has become divided over this lack of momentum, and many have criticized the meme-based cryptocurrency's recent price performance. Dogecoin has been steadily declining for a number of months, as can be seen from the chart. With the 200-day EMA serving as a major barrier, the price has found it difficult to break above important moving averages.
Elon Musk effect gone
The fact that the price has not increased even when well-known people promote DOGE on social media indicates that the market's perception of Dogecoin has changed. In the past, the price of Dogecoin has increased in response to support from well-known individuals like Musk.
But the community's method of depending on endorsements to drive price changes has grown in the last few months. Because they are sick of the ephemeral pumps, investors are starting to demand more stable price action grounded in sound fundamentals, as opposed to celebrity tweets. Thus, part of the reason why Musk's influence is not as strong as it once was is the state of the cryptocurrency market as a whole.
What do traders really want?
Crypto traders are now more interested in the applicability and use cases of cryptocurrencies than in endorsements, as the hype-driven nature of 2021 has mostly subsided.
Dogecoin needs to overcome significant resistance levels in order to begin to rise again, especially the 200-day and 26-day moving averages, which have both served as significant obstacles in recent months. Regaining investor confidence and stabilizing the price may also be aided by a renewed emphasis on utility or integration into more use cases.