Has Tesla and SpaceX CEO Elon Musk lost his influence on cryptocurrencies? In his usual "Dogefather" self, Musk tweeted on Saturday to further promote his favorite meme-based cryptocurrency Dogecoin, and he even involved his baby son, X Æ A-12, CNBC reported.
"Lil X is hodling his Doge like a champ. Literally never said 'sell' even once," Musk said in a reply to a Twitter user's comment.
Lil X is hodling his Doge like a champ. Literally never said the word “sell” even once!— Elon Musk (@elonmusk) July 17, 2021
Musk even changed his Twitter profile picture to one that shows him wearing sunglasses with a shiba inu dog in the reflection.
Dogecoin Price Continues Free Fall Despite Musk 'Lil X' Tweet
But while Musk's tweet led to a brief rise in Dogecoin price to 20 cents on Saturday, it fell back to 17 cents on Monday morning. Currently, Dogecoin has fallen 4.82 percent to $0.174332, according to Coindesk. This trend indicates huge push for a sell-off, and quite more interestingly, Musk's fading influence over Dogecoin.
The Twitter user @UncleDoge apparently parodied Musk's claim in a February 10 tweet, wherein he declared buying some "Dogecoin for lil x" leading to his reply tweet on Saturday.
Bought some Dogecoin for lil X, so he can be a toddler hodler— Elon Musk (@elonmusk) February 10, 2021
With his diminished influence over the meme coin, Dogecoin value continues to drop.
Dogecoin price fell 76 percent from its record-high price of 32 cents in April to its current value. According to an FXStreet report, DOGE has plummeted 18 percent and about 40 percent since June 19, which hints the continued sell-off.
And despite Musk's "Lil X" tweet on Saturday, the offloading went on. If Dogecoin continues its slide, it will get near the $0.161 support level that would indicate it would stand at the neckline of head-and-shoulders pattern or a bullish-to-bearish reversal, FX Street said.
Huge Dogecoin Rally Needed to Stop Continuing Sell-off
But if Dogecoin would avoid the support level, the sell-off can be delayed, FX Street further said in its analysis. To stop the bearish trend, DOGE may need to rally 81 percent and reach a decisive daily candlestick pattern to close above $0.294.
Musk's perceived waning influence due to a tweet that did not help reverse the Dogecoin decline might be temporary, considering the immense push he has made to the meme cryptocurrency lately.
When Musk tweeted in early July about Dogecoin beating top cryptocurrencies Bitcoin and Ethereum after a protocol change, Dogecoin then surged 5.47 percent that brought it to $0.22 a coin.
In a reply to a tweet of popular YouTuber and crypto investor Matt Wallace, Musk cautioned that Bitcoin and Ethereum are "pursuing a multilayer transaction system" that stands to offer a "base transaction rate (that) is slow and transaction cost is high."
In contrast, Musk said that Dogecoin would stand out better in terms of transactions. He tweeted that there is "merit (in my opinion) to maximizing base transaction rate and minimizing transaction cost," as exchanges would serve as the "de facto secondary layer."