The price of Dogecoin plummeted 15%, and Musk promptly stood up to support Dogecoin

According to CoinMarketCap data, Dogecoin (DOGE), known for its quirky origins, saw its price drop by approximately 15.5% in a single day on Friday, July 5th.

Market Indicator Analysis for Dogecoin

CoinMarketCap data highlights the inherent volatility in the cryptocurrency market.

The current RSI (Relative Strength Index) level indicates an oversold condition, historically a precursor to a reversal or rebound.

Sumit Kapoor, the founder of WiseAdviceSumit, commented on the situation, predicting an imminent bullish recovery.

Until July 3rd, the Moving Average Convergence Divergence (MACD) indicator showed bullish signs, though it turned bearish on July 4th, reflecting the market's turbulence for DOGE.

Elon Musk's Continued Support for Dogecoin

Despite the significant price drop, Elon Musk remains optimistic about Dogecoin. In a recent interview, he stated, "I intend to personally support Dogecoin," offering a glimmer of hope for investors.

He compared Dogecoin to Bitcoin, suggesting that Dogecoin is "better suited for transactions" than Bitcoin, highlighting its potential utility in real-world applications.

Musk's Long-Standing Affinity with Dogecoin

Elon Musk has been a staunch supporter of DOGE for years, dating back to his first tweet about the token in 2019. Since then, Musk has taken various steps to incorporate DOGE into his business ventures.

Dogecoin Payments for Tesla Merchandise

In May this year, Musk enabled DOGE as a payment method for Tesla merchandise and is working towards obtaining payment licenses for his social media platform, X.

This new feature was introduced after Musk visited the Berlin Gigafactory, where he was asked about enabling DOGE payments. "We should enable it," Musk responded.

Tesla customers can now send DOGE to Tesla's wallet in exchange for merchandise.

Although Tesla has not officially announced this change, DOGE enthusiasts quickly noticed, leading to a price increase of over 20% in the following days.

Even before acquiring X, Musk envisioned offering DOGE as a payment method on the social media platform. Thus, obtaining remittance licenses could indicate that the X team is moving towards integrating DOGE payments on the platform.

Musk's $258 Billion Dogecoin Racketeering Lawsuit

In June 2022, investor Keith Johnson filed a massive $258 billion lawsuit against Musk, accusing him of participating in a pyramid scheme to manipulate DOGE prices.

In a late-night filing in Manhattan federal court, Musk and his electric car company Tesla Inc. (TSLA.O) called the Dogecoin investors' lawsuit a "fanciful work of fiction," attributing it to Musk's "innocuous and often silly tweets" about Dogecoin.

Musk's lawyers argued that "tweeting words of support or funny pictures about a legitimate cryptocurrency, which continues to hold a market cap of nearly $10 billion, is not illegal."

The lawyers stated that investors never explained how Musk intended to defraud anyone or what risks he concealed, and his statements like "Dogecoin Rulz" and "No highs, no lows, only Doge" were too vague to support fraud claims.