The Dogecoin price prediction remains bullish, especially above the 38,2% Fibonacci retracement level of €0,1200. Despite strong support from billionaire Elon Musk, Dogecoin failed to extend its previous four-day bull rally and lost ground.
Billionaire Elon Musk has been a fan of the Dogecoin cryptocurrency for a long time, with the price of Dogecoin rising over 145% this week following his official takeover on Twitter last week. However, the gains gradually faded as he snapped his winning streak and was seen as one of the day's biggest losers.
The recent interest rate increase by the US Federal Reserve, which had a negative impact on the entire crypto market, could be the cause of its recent declines. Therefore, the poor performance of the cryptocurrency market also played a major role in weakening Dogecoin.
On the other hand, there have been many positive reports about the possible adoption of Dogecoin, which could significantly increase its price. This can be seen in Elon Musk's recent discussion of using Dogecoin as a payment method.
Will Elon Musk add DOGE payments to Twitter?
On Halloween, the world's richest businessman wore DOGE army badges and hinted that he would accept Dogecoin as payment for Twitter features. Using a blinking emoji reinforces this idea.
Over the summer, Musk became the largest individual investor in Twitter after buying 9,1% of the company's shares.
Since then, the Dogecoin army has been eagerly awaiting this development. Finally, he was invited to become a member of the board of directors. However, he refused. At the time, Elon was offering to integrate DOGE as a paid option for Twitter Blue.
Twitter Sued Over Mass Layoffs Of Elon Musk
Bloomberg reported Friday that a class-action lawsuit has been filed in federal court in San Francisco over Elon Musk's proposal to fire about half of Twitter's employees.
Twitter employees reported that the company fired people without providing the notice required by federal and California law. Dogecoin may feel the heat and drop lower as a result.
FOMC Hawkish and Fed Rate Cap Doge's Uptrend
Due to the aggressive stance of the Federal Reserve, the global cryptocurrency market lost momentum and was unable to maintain its current uptrend. The recent 75 basis point interest rate hike by the US Federal Reserve has affected all cryptocurrencies. This could lead to an even bigger drop in the market capitalization of all cryptocurrencies.
Elon Musk's favorite coin, Dogecoin (DOGE), was one of the biggest losers on Thursday due to the aggressive stance of the Federal Reserve.
Bitcoin (BTC) and Ethereum (ETH), on the other hand, were able to maintain their respective prices of €1,500 and €20,000, respectively. Given this, the aggressive policy of the Federal Reserve and the cryptocurrency bear market had little impact on the price of Dogecoin.
Strong US dollar performance
On the other hand, the rise of the US dollar has contributed greatly to the decline of cryptocurrencies. The dollar maintained its bullish trend and traded well throughout the day as the Fed raised its benchmark rate by 75 basis points (bps) to 3,75-4% on Wednesday.
Many cryptocurrencies experienced sharp declines due to the strengthening of the US dollar.
Dogecoin and Tokenomics Prices
Dogecoin's current price is €0,1236, with a 24-hour trading volume of €2,700 billion. Over the last 24 hours, Dogecoin has fallen by 6,21%, followed by a weekly gain of 145%. CoinMarketCap is now in 16th place with a live market capitalization of €132,670,764,300 billion. The circulating supply is XNUMX DOGE coins.