Analyst Wonders if Musk Could Choose XRP Over Dogecoin for X Payments

One market watcher is questioning whether Dogecoin can become a payment token for X. Analyst Joshua Dalton recently speculated that Elon Musk could prefer using Ripple XRP/USD instead.

Dalton wrote in a recent X post that Musk could select XRP to differentiate himself from pro-Bitcoin BTC/USD political leaders, including the Trump family.

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The Trumps have been active with Bitcoin investments, and have created a Bitcoin treasury reserve and ETF filings via Trump Media & Technology Group Corp DJT. Dalton believes that Musk could support XRP as a strategic move to stay away from Trump related financial narratives.

Musk has been a vocal supporter of Dogecoin, mentioning the token in public events and selling DOGE-branded merchandise for Tesla. He has remained tight-lipped on XRP, however, and refused to comment on it at a public town hall in 2024.

Based on Musk's historical support, DOGE enthusiasts are hoping for it to be included in X’s payment plans, but there's still a lot of uncertainty about a role. Musk’s social media platform might be focusing on stablecoins for payments. Early discussions have started with companies like Stripe to bring stablecoin products via the X Money app, which could have lower fees and easier cross-border payments.

Dogecoin traded at $0.1780, up 1.68%, on Monday.

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Trading and Technicals

Dogecoin’s recent price action shows increasing bearish pressure as the token lost over 2.36% in a week, and over 17.57% in a month. It's trading just below a key resistance level of $0.181, and several indicators are confirming a downward pressure.

According to the on-chain data, Dogecoin holders have significantly increased their profit taking. The Network Realized Profit/Loss graph shows a spike on June 14, which was the highest level in a month. It led to a large-scale exit by long-term holders.

Further bearishness is supported by Santiment’s The Age Consumed metric, which shows bearish sentiment as inactive DOGE tokens are starting to move again. It implies that owners are transferring tokens to exchanges, as the sell pressure is increasing. The recent spike is the highest since mid-May and typically aligns with local price highs.

Dogecoin price fell below its 50-day EMA of $0.195 and key support at $0.181. The next crucial level is at $0.168. It is the make or break region, and if it doesn't hold the price can drop to $0.12, or even lower, to $0.093 or $0.078.

The RSI on the daily chart is bearish at 38, and the MACD is showing a bearish crossover, which indicates there will be further downside. Dogecoin is on the lower boundary of the symmetrical triangle pattern, which isn't a healthy sign. A clear breakdown below $0.168 can put the token in a “void zone,” which could lead to a sharp decline.

Dogecoin is facing many challenges like a deteriorating technical structure, weakening holder confidence, and increasing speculation regarding Elon Musk’s transition to XRP or stablecoins for his payments platform.

While the coin may rebound in the short term if it reverses to $0.181, and breaks above the $0.195 EMA, its long-term trend is bearish. If it doesn't hold over $0.168, there could be heavy selling and targets could reach as low as $0.12.

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