Dogecoin Price Slumps Amid Elon Musk's Market Manipulation Lawsuit
According to Musk's lawyer, the assertion that the Tesla CEO is a DOGE whale is "without basis."
Dogecoin, the top memecoin which has been supported by Elon Musk many times is now facing a downfall due to the same personality.
Elon Musk's $258 billion lawsuit, which is still ongoing, has received new updates. In the ongoing class action case, Tesla CEO Elon Musk refutes charges that he owns Dogecoin wallets tied to insider trading.
Musk is accused in the case of engaging in a racketeering plot to support the meme-based cryptocurrency. Musk denies owning Dogecoin (DOGE) wallets linked to insider trading in reaction to the claim.
Musk Denies Owning DOGE Wallets Connecting Insider Trading
According to court documents, two wallets linked to Musk traded 1.4 billion Dogecoins. Over a two-day period in April, this amounted to more than $124 million. Meanwhile, Musk's lawyer, Alex Shapiro, denies the charges as baseless and devoid of evidence.
Musk is accused of market manipulation and capitalising on his large Twitter following in a revised complaint brought by a group of Dogecoin investors. Musk, dubbed the "Dogefather" and "Dogecoin CEO," has been an active supporter of the meme coin, constantly tweeting about it.
The lawsuit claims that Musk's actions, particularly his social media presence and participation on NBC's Saturday Night Live, contributed to the price manipulation of the token. The amount of Musk's engagement with Dogecoin will ultimately be determined by the court.
According to a letter obtained by The New York Post, Elon Musk's attorney, Alex Shapiro, has disputed these charges.
“You specifically allege, without basis, that the following wallets ‘belong’ to [Musk],” it reads.
“The sole basis for your claim is that these wallets sold Dogecoin at a time when, according to the Third Amended Complaint, prices were up.”
The lawsuit has affected Dogecoin's price since the case was filed. Let's see where the price will go from here.
Dogecoin Price Analysis
Dogecoin (DOGE) is currently trading at $0.061883 with a 24-hour trading volume of $201,879,356.01. This indicates a -1.97% decrease in the last 24 hours and a 1.25% gain in the last seven days. Dogecoin has a market valuation of $8,647,320,921 and a circulating supply of 140 billion DOGE.
On the daily chart, DOGE has already broken out from the descending triangle pattern on 10 June after which the memecoin descended almost 11%. Since then the Dogecoin price action is following a declining channel pattern which is usually a bullish pattern.
The 14-day RSI is at 43 which is considered a neutral zone. The price may surge as the RSI has been pushed by bulls after registering a 2% decline in 24 hours.
Conclusion
In conclusion, the market circumstances for Dogecoin (DOGE) are mixed. The technical indicators point to a "sell" action, indicating that the price of DOGE may fall. However, the moving averages point to a "buy" movement, indicating a possible upward trend.
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