Is Enthusiasm Over Tesla Merch News Over? Why Dogecoin Is Slumping Today

Dogecoin DOGE/USD traded 17.5% lower at $0.179 over 24 hours early Wednesday morning.

What’s Moving? The meme cryptocurrency was up about 3% for week.

DOGE traded 15.5% and 14.9% lower against Bitcoin and Ethereum over a 24-hour period, respectively.

Since the year began, DOGE has risen about 3000%. The cryptocurrency touched an all-time high of $0.74 in May.

See Also: How To Buy Dogecoin (DOGE)

Why Is It Moving? DOGE fell in contrast with other major coins at press time, as the global cryptocurrency market capitalization increased 0.67% to $2.19 trillion.

DOGE was the second-most mentioned cryptocurrency on Twitter, as per Cointrendz data. It attracted 6,361 tweets at press time. Bitcoin, the most mentioned coin, attracted 9,903 tweets.

On Tuesday evening, major cryptocurrencies exhibited resilience ahead of a key Federal Reserve press conference — scheduled for Wednesday. The U.S. central bank is expected to significantly raise the pace of tapering in wake of rising inflationary pressures.

DOGE was on a tear after Tesla Inc TSLA CEO Elon Musk said the automaker will make some merchandise buyable with DOGE before reversing course.

DOGE co-creator Billy Markus urged his followers to use their coins to buy things and tip others. Markus also noted Musk’s announcement on Twitter and said in a tongue-in-cheek fashion that it was “probably nothing.”

Benzinga’s Melanie Schaffer noted Tuesday that DOGE faces three heavy resistance zones: the 50-day simple moving average, a long-term ascending trendline and a support and resistance level near the 23-cent mark.

Read Next: Why Elon Musk Thinks Dogecoin Is Better For Transactions Than Bitcoin