Dogecoin price fails to recover despite Elon Musk’s announcement

• Elon Musk, billionaire investor revealed that Shiba-Inu-themed cryptocurrency Dogecoin can be used to buy merchandise on both Tesla and SpaceX. 
• Despite the catalyst, analysts believe the Dogecoin price could fail to recover from its recent slump and identify $0.0637 as the short-term target. 
• Analysts identify signs of capital rotation in Dogecoin, and believe recovery in Dogecoin is less likely.

Elon Musk’s recent tweet about accepting Dogecoin payments at SpaceX failed to trigger a rally in the Shiba-Inu-themed meme coin. Proponents believe DOGE could struggle to recover from its downtrend in 2022. 

Dogecoin fails to make come back

Elon Musk, the billionaire founder and CEO of Tesla and SpaceX, who is popular by his self-proclaimed title of “Doge Father,” made a new announcement about Dogecoin. Musk informed the community that Dogecoin payments will now be accepted in exchange for merchandize on both Tesla and SpaceX. 

Users would make Dogecoin payments through their wallet and purchase merchandise across these platforms. The billionaire CEO of SpaceX has made his choice of Dogecoin as payment clear, opening up the gates across shops in his projects. 

@Mangyek0, leading cryptocurrency analyst at FXStreet, argues that capital rotation is ongoing in the crypto ecosystem. The analyst argues that investors’ mindset towards Dogecoin has changed. 

Poor adoption of Dogecoin across global businesses

Analysts argued that new announcements and a boost in utility of Dogecoin could push the meme coin’s price higher. However, bullish drivers have failed to trigger a rally in the meme coin’s price. 

A key factor in bearish sentiment on the meme coin is poor adoption by businesses. Motley Fool, a financial advice firm, recently revealed that 1300 business across the globe accept DOGE. 

While 36% of the United States’ small businesses accept Bitcoin, Dogecoin is struggling with a boost in its adoption. The hype built around Dogecoin adoption has sustained to drive a price rally in DOGE. 

Michelle Jongbloets, a crypto YouTuber and analyst, evaluated the Dogecoin price chart and noted that the DOGE price is retracing. The analyst argues that it is alarming to see a 20-day moving average and 50 day moving average closing in. Dogecoin price is currently well above the two moving averages, however, a crossover could confirm a bearish phase in DOGE. 

DOGEUSD chart