Cryptocurrencies have bounced back from their lows. On July 28, Bitcoin prices have moved above $40,000 even though Amazon denied that it was considering accepting it as a payment method. While Dogecoin has recovered from its recent lows, it's sagging near the 20-cent price level and hasn't held on to higher price levels. What’s the forecast for DOGE in 2021? Can Elon Musk pump the meme cryptocurrency higher?
As the self-proclaimed “dogefather,” Musk is among the biggest backers of DOGE. He also started to accept it as a payment on his privately-held SpaceX but backed out of accepting the meme coin as payment for Tesla cars.
Which companies accept Dogecoin?
Burger King Brazil has started to accept Dogecoin as payment for its dog snack Dogpper. Several other companies like Kronos and Kessler Collection also accept Dogecoin as payment. NBA team Dallas Mavericks accepts Dogecoins. However, despite some aggressive lobbying by DOGE fans, Amazon didn't accept the cryptocurrency.
Is Elon Musk pumping DOGE?
There wasn’t ever any doubt that Musk has been pumping cryptocurrencies including Dogecoin. Recently, he admitted to pumping Bitcoin. “If the price of bitcoin goes down, I lose money. I might pump, but I don’t dump. I definitely do not believe in getting the price high and selling or anything like that,” Musk recently said at “The B-Word” conference. He also said that he holds cryptos like Dogecoin, Ethereum, and Bitcoin. Musk said that Bitcoin is his biggest holding.
Musk's ability to influence Dogecoins
Musk seems to have lost at least some of his ability to impact Dogecoin prices. While he has been frequently tweeting about DOGE and even tweeted a meme calling DOGE the “money,” the tweets haven’t had the market-moving impact as they did a few months ago.
One reason here could be that markets want something concrete from Musk in support of Dogecoin and not merely tweets and retweets. Musk needs to allow Dogecoin as a payment method for Tesla and maybe even buy some DOGE to signal his support for the cryptocurrency.
Tesla bought some Bitcoins in the first quarter of 2021. The company’s amended investment policy allows it to invest the spare cash (which Tesla has quite a lot) into cryptocurrencies.
Dogecoin price prediction
Dogecoin is looking bearish technically. It has failed to cross above the 30-day, 50-day, and 100-day SMA (simple moving average), which is a bearish sign. The 14-day RSI (relative strength index) is neutral at 46.8.
Meanwhile, DOGE needs to cross above the key moving averages for a technical uptrend to resume. DOGE has managed to find support at the 200-day SMA, which is a relief for traders who have seen the joke cryptocurrency plunge in value.
There aren’t a lot of bullish drivers to take DOGE higher. However, the outlook could change if retail traders can get their act together. There are a lot of Dogecoin bulls who have been trying to pump DOGE. In the absence of any major bullish narrative, DOGE hasn't risen on a sustainable basis and has drifted towards the $0.20 price level.