Dogecoin misses bullish target after Elon Musk snubs Twitter

Dogecoin (DOGE) has missed a much-anticipated technical upside target and is down nearly 10% over the past week amid an ongoing spat between Elon Musk and Twitter.

Musk hurts DOGE price

To recap, Musk, whose companies Tesla, SpaceX and Vegas Loop accept DOGE payments, had suggested introducing the same checkout option on Twitter this April.

Bitcoin spoofs a breakout while Dogecoin jumps on Elon Musk’s Twitter takeover news. https://t.co/dlMH5u5jaf
— Cointelegraph (@Cointelegraph) April 25, 2022

Nonetheless, the Musk-Twitter deal hturned sour after the billionaire attempted to walk away from his $44 billion takeover bid. In response, the platform has sued Musk, alleging that his heart changed after suffering personal losses in the ongoing global market carnage.

Some Dogecoin traders had eyed Musk’s Twitter takeover to stay bullish on DOGE/USD, considering the deal would boost the token’s adoption across the platform’s 330 million monthly active users.

#Dogecoin | The number of large transactions on the $DOGE network with a value greater than $100,000 just reached a four-month high at 2,400 transactions.
Such market behavior can act as a proxy for whales’ activity, suggesting how they may be positioning for a big price move. pic.twitter.com/K49QfXFVYb
— Ali Martinez (@ali_charts) April 26, 2022

Dogecoin misses IH&S target

Dogecoin dropped by 19.5% after Musk called off the Twitter deal on July 8. In doing so, DOGE also invalidated its prevailing “inverse head and shoulders (IH&S)” pattern that could have pushed its price per token toward $0.112, as shown below.

*DOGE/USD daily price chart featuring IH&S pattern. Source: TradingView*

Bias conflict ahead

Dogecoin now holds above a multi-month “mid-channel support” near $0.06 while remaining indecisive for now, as shown in the chart below.

*DOGE/USD three-day price chart. Source: TradingView*

DOGE’s price eyes $0.09 as the next target if it rallies decisively from the mid-channel support. The upside target coincides with the descending trendline (distribution level) that has been serving as resistance since May 2021.

Conversely, a break below the mid-channel support could have DOGE’s price test $0.04 as its downside target, down 32% from July 13’s price. This level coincides with another descending trendline (accumulation level) that has acted as support for Dogecoin’s price since April 2021.

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