Dogecoin (CRYPTO: DOGE) was trading more than 5% lower at one point on Thursday in sympathy with Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), which had fallen over 5% and 4%, respectively, by late afternoon.
On Wednesday, Dogecoin co-creator Billy Markus retweeted a meme, first posted by @TeslaAIBot that appeared to recirculate a rumor that McDonald's Corp (NYSE: NYSE:MCD) may begin to accept the meme-crypto as payment.
In January, McDonald's teased at the idea on Twitter Inc (NYSE: NYSE:TWTR), bantering back and forth with Tesla Inc (NASDAQ: TSLA) CEO Elon Musk. But after the fast-food giant’s Super Bowl LVI commercial aired on Feb. 13, it became apparent McDonald's had not decided to accept the coin.
Markus is likely circulating the meme for fun because after the McDonald’s commercial aired, Markus took to Twitter to criticize his followers when he posted: “if you believed the rumor, examine your thought process and who you were listening to very carefully, cuz it was a pretty silly one.”
Although Dogecoin has been known to react wildly when social media influencers or corporations make comments about it on Twitter, the moves are usually short-lived and the crypto eventually falls or rises back into a previous pattern or trading range.
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The Dogecoin Chart: Dogecoin has been trading in a confirmed downtrend in a falling channel pattern since Feb. 8. The falling channel pattern is considered to be bearish until the crypto breaks up bullishly from the upper descending trendline of the formation.
- On Thursday, Dogecoin was trading lower on higher-than-average volume, which indicates there is a high level of interest in the crypto, although there is more interest from the bears than the bulls. As of late afternoon, Dogecoin’s volume was measuring in at more than 222 million compared to the average 10-day volume of 169.48 million.
- Dogecoin’s relative strength index (RSI) is measuring in at about 36%, which indicates a bounce to the upside may come over the next few days because the crypto is nearing oversold territory.
- On Thursday, Dogecoin was attempting to hold above the median line of the falling channel pattern, which is a positive indication for bullish traders. If big bullish volume enters into the crypto and it can regain the eight-day exponential moving average as support, Dogecoin may gain the power to break up bullishly from the channel.
- Dogecoin has resistance above at $0.12 cents and $0.135 and support below at $0.106 and the psychologically important 10-cent mark.
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