Billionaire investor Elon Musk has announced that the Shiba-Inu-themed cryptocurrency Dogecoin (DOGE) can be used to purchase goods at both Tesla and SpaceX. Despite the catalyst, analysts believe that Dogecoin price may not recover from its recent decline and may see $0.0637 as a short-term target.
Dogecoin can’t return
As you can follow on Kriptokoin.com, the billionaire founder and CEO of Tesla and SpaceX, Elon Musk, made a new announcement about Dogecoin. Elon Musk has informed the community that DOGE payments will now be accepted in exchange for products at both Tesla and SpaceX.
Users will make Dogecoin payments through their wallets and purchase goods through these platforms. The billionaire CEO of SpaceX has clarified his choice of Dogecoin as payment by opening the doors of stores in his projects.
However, Elon Musk’s latest tweet is Shiba-Inu themed failed to trigger a rally in the meme money. Fans believe that DOGE may struggle to break out of the downtrend in 2022.
Leading cryptocurrency analyst Mangyek0 argues that capital rotation continues in the crypto ecosystem. The analyst argues that the mindset of investors towards the meme coin Dogecoin has changed.
Dogecoin adoption and price performance
On the other hand, analysts argue that the new news and the increase in the use of Dogecoin may increase the price of the meme coin. However, bullish drivers failed to trigger a rally in the meme coin’s price.
According to experts, a key factor in the bearish sentiment in the meme coin is its poor adoption by businesses. Motley Fool, a financial advisory firm, recently announced that 1,300 businesses worldwide have accepted DOGE.
While 36% of US small businesses accept Bitcoin, Dogecoin is struggling for it in adoption. The hype built around the adoption of Dogecoin is not enough to create a price rally in DOGE.
Michelle Jongbloets, a crypto analyst evaluating the Dogecoin price chart, notes that the DOGE price has pulled back. The analyst argues that it is alarming to see the 20-day moving average and 50-day moving average closing. According to the analyst, Dogecoin price is currently well above the two moving averages, but a crossover could confirm the bearish phase in DOGE.
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