Elon Musk, the billionaire founder of Tesla and SpaceX, has long been a supporter of Dogecoin, and is not shy about discussing his love for the meme coin. Typically, when Musk talks about DOGE, the price tends to rise as investors rush to capitalize on the publicity. However, this time things have gone in the opposite direction, with Musk mentioning the meme and seeing its price drop instead.
Speaking at the CEO Council Summit of The Wall Street Journal in London, Musk reaffirmed his support for Dogecoin, stating that he likes the meme coin because of its humor and the fact that it features dogs. However, he went on to caution against betting savings on either cryptocurrency or Dogecoin.
"I wouldn't encourage anyone to invest their life savings in cryptocurrency or to put too much money into Dogecoin or anything," said the billionaire when asked if he was still a fan of cryptocurrencies.
Musk's endorsement has been one of the key drivers of Dogecoin's rise to new all-time highs in 2021. His tweets have moved the price positively at various times. However, this time his stance was different from what was expected, and the price of DOGE suffered as a result.
In a rare occurrence, the price of Dogecoin actually fell after Musk mentioned the meme coin during the interview. The price dropped by over 3% in the last 24 hours, dangerously close to the support level of $0.07. As a result, DOGE has fallen below its 200-day moving average, putting it on a short-to-medium-term downward trend. With Bitcoin also experiencing losses, it's brought the market down, leaving little room for DOGE to recover.
Nonetheless, many in the community continue to hope that Elon Musk will eventually announce a DOGE integration on Twitter as a payment method. Such a move would undoubtedly lead to an upward potential of at least 50% for the meme coin and could be a catalyst for its next rally.
At the time of writing this article, DOGE is changing hands at a price of $0.07113.
