DIGIVESTASI - Dogecoin Faces Market Pressure After November Surge, The cryptocurrency Dogecoin, famous for its meme origins, is under significant pressure following its stellar performance last November. The notable price drop has sparked concerns among investors, particularly if Elon Musk, its most prominent advocate, reduces his role in the Dogecoin community.

Questions have arisen about the fate of Dogecoin should Musk withdraw his support.

Bearish Market Looms

According to Coingape.com, Dogecoin experienced a surge alongside major cryptocurrencies like Bitcoin in November, reflecting market optimism. However, the market's trajectory has since reversed. The current bearish trend exerts substantial pressure on Dogecoin’s price, adding doubts about its stability.

Amid these challenges, investor attention has shifted to the X Payments project proposed by Elon Musk. This financial platform, intended to integrate with the social media platform X, faces regulatory hurdles in several U.S. states, potentially delaying its launch.

Even if X Payments is released, it is unlikely Dogecoin will be selected as the primary currency. Its inflationary nature is considered incompatible with the proposed financial system. This uncertainty further compounds the pressure on Dogecoin prices.

Price Decline Predictions

Market analysis suggests that reduced support from Elon Musk could trigger a price drop of 40 to 60 percent, with projections placing Dogecoin’s value between $0.123 and $0.22. If critical support levels at $0.77 and $0.057 fail to hold, Dogecoin’s price could plummet by up to 82 percent, reaching $0.0098.

Recent trade data shows that Dogecoin has already lost over 13 percent of its value within just 24 hours. The price has broken through the $0.35 support level, hitting a low of $0.30.

Oversold Conditions Indicated

The Relative Strength Index (RSI) on the 4-hour chart stands at 17.67, signaling oversold conditions. Such figures typically indicate a potential trend reversal or a temporary pause in the decline as buyers may enter to capitalize on the low price.

However, if selling pressure persists, Dogecoin’s price could fall further to $0.25. Conversely, a return of bullish momentum may lift Dogecoin back to $0.35.

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