What Happened to Dogecoin Over the Weekend, And What’s Next?

Dogecoin had an unexpected rise through the past week, rising over several sessions ahead of Tesla CEO Elon Musk’s appearance on “Saturday Night Live” as markets expected him to talk up his favorite memecoin. However, prices started the decline amid a cautious mood even before the start of the show, only to crash after Musk called it a “hustle”.

At the time of writing, DOGE/USD is trading at around $0.52. On Sunday, however, the cryptocurrency that initially started as a joke received somewhat of a revival after the Geometric Energy Corporation announced that it would collaborate with Musk’s company SpaceX to put a satellite in space for which the payment would be made entirely in Dogecoin.

The company’s CEO Samuel Reid remarked, “Having officially transacted with DOGE for a deal of this magnitude, Geometric Energy Corporation and SpaceX have solidified DOGE as a unit of account for lunar business in the space sector.” His comments were followed by SpaceX’s Vice President of Commercial Sales Tom Ochinero reaffirming that such a development will help “demonstrate the application of cryptocurrency beyond Earth orbit and set the foundation for interplanetary commerce.”

However, these comments offered very little respite after Musk’s SNL appearance caused Dogecoin to lose around $30 billion in market value.  In addition, Grayscale’s decision to short $1 million worth of the digital asset didn’t help things for the memecoin’s traders, making matters worse.

Looking Ahead

After losing over 18% of its value over the weekend, Monday started on slightly bullish note for DOGE/USD. However, the optimism was short-lived as the direction reversed downwards a short while later.

Although the momentum indicator suggests a bullish bias, buyers need to break past resistance at $0.62 for the momentum to strengthen further. However, a bearish tilt indicates that the key level of interest sit around support for now, at $0.42. If this support fails, it opens the door for further selling pressure which can take DOGE all the way down to $0.38.