The upcoming biography of Elon Musk, scheduled for release on September 12, is set to reveal previously undisclosed details about the billionaire’s involvement in the cryptocurrency world, particularly with regards to Dogecoin. The Wall Street Journal has reported that the biography discloses Musk’s discreet funding of Dogecoin’s development, highlighting his significant influence on the meme coin’s popularity. This revelation is in line with previous suspicions that Musk’s comments on Dogecoin have played a pivotal role in shaping its market dynamics.
Earlier this year, Musk faced a class-action lawsuit accusing him of insider trading and artificially inflating Dogecoin’s price. In his defense, Musk stated that his tweets in support of Dogecoin did not violate any laws. The biography, written by Walter Isaacson, also reveals Musk’s consideration of launching a blockchain-based social media platform with integrated payments. The idea was suggested by his brother Kimbal, who proposed creating a new social media platform based on blockchain technology. Musk even humorously contemplated using Dogecoin as the payment system for this platform. However, Musk recently clarified that X, the rebranded version of Twitter which he acquired for $44 billion, would never introduce its own token.
The biography also delves into a failed investment attempt by Sam Bankman-Fried (SBF), the former CEO of the now-defunct crypto exchange FTX. SBF reportedly proposed a $5 billion investment to support Musk’s acquisition of Twitter. However, after FTX collapsed, Musk clarified that neither he nor Twitter had accepted any investments from SBF or FTX.
Despite the intriguing revelations from Musk’s biography, the price of Dogecoin seems unaffected. Currently trading at $0.0633, the price of DOGE on the 4-hour chart shows a sideways trend, oscillating between the 23.6% ($0.0626) and 38.2% Fibonacci retracement levels ($0.0667). However, when looking at the higher time frame (1-day chart), a different picture emerges. Dogecoin has been in a persistent downtrend since December of the previous year, characterized by a descending trend channel. Although it experienced a bounce off the upper trendline of the channel in late July, it has since resumed its decline. Key support levels, including the 200-day Exponential Moving Average (EMA), have been breached, indicating potential bearish momentum. Based on current chart patterns, there is a looming possibility that DOGE might retest its annual low at $0.05593. In a more pessimistic scenario, a descent to the lower boundary of the descending channel, around $0.05, seems possible.
Nevertheless, if DOGE manages to defend its current price level, it could present an attractive entry point for prospective investors. To trigger a significant price rally, it is crucial for DOGE to rebound from this potential new low with substantial buying volume, aiming for a price target above $0.058.
In conclusion, the upcoming biography of Elon Musk sheds light on his involvement in the crypto world, particularly with Dogecoin. Musk’s discreet funding of Dogecoin’s development underscores his significant influence on the meme coin’s popularity. Despite these revelations, Dogecoin’s price remains relatively unchanged, showing a sideways trend in the lower time frame and a persistent downtrend in the higher time frame. Overall, the biography offers new insights into Musk’s crypto ventures and highlights the challenges Dogecoin faces in the market.
