Elon Musk’s Dogecoin tweet fails to stop the decline: can DOGE recover?

• Dogecoin continues to drop despite Musk’s tweet supporting it over other cryptos.
• Key support at $0.2220 with risks of a further drop if the support does not hold.
• Recovery is possible if DOGE breaks $0.2350 resistance.

Dogecoin (DOGE), the popular meme-based cryptocurrency, has once again found itself at the centre of the crypto spotlight.

This time, however, not even Elon Musk’s vocal support seems enough to stop its current price dip.

Despite Musk’s latest remarks affirming his fondness for Dogecoin, saying “I like dogs and memes” while dismissing other cryptocurrencies, DOGE continued its downward trend, dropping 6% today.

ELON MUSK: “I'm not going to be promoting crypto, at most, in a joking way. If you see me pumping crypto, it's not me. I do think there's merit in Bitcoin. I've sort of got a soft spot for Dogecoin because I like dogs and memes." pic.twitter.com/UodntUe0Ad

— DogeDesigner (@cb_doge) July 25, 2025

Dogecoin price continues to slide bullish technical patterns

Dogecoin had surged an impressive 38% over the past month, buoyed by strong technical patterns and massive whale accumulation.

Earlier, a popular analyst had identified a Livermore Cylinder pattern on the charts, a formation often associated with parabolic rallies.

This pattern led many to believe DOGE could break through resistance levels and potentially reach $1.50 in the coming months.

#DOGE is trading inside a textbook Livermore Cylinder!

Essentially a Bullish Megaphone, this pattern was invented by Jesse Livermore to point out the Accumulation Phase of an asset inside a Cylinder before it breaks to the upside aggressively.

If that's indeed the case for… pic.twitter.com/5ygeOnxd9l

— TradingShot (@TradingShot) July 23, 2025

Moreover, on-chain data shows that over $250 million worth of DOGE was scooped up by large holders in just 48 hours.

Trading volume has also spiked by 77%, indicating heightened interest and aggressive buying pressure.

These developments signalled to many that a significant breakout was on the horizon.

However, following a recent decline from the $0.250 mark, Dogecoin began to underperform compared to Bitcoin and Ethereum.

The memecoin has dropped below several support zones, and now trades under both the $0.2320 level and its 100-hourly simple moving average, leaving many traders cautious.

Bear pressure mounts

Technically, Dogecoin is now facing resistance at $0.2280 and $0.2350.

A bearish trend line has formed on the hourly chart, suggesting further downward pressure unless bulls reclaim these critical levels.

In addition, the hourly MACD is gaining strength in the red zone, while the Relative Strength Index (RSI) remains below the neutral 50 level.

A key support has formed at $0.2220, and a drop below this could expose DOGE to further declines toward $0.2120 and possibly even $0.2054.

If DOGE breaks below the $0.2054 level, the next downside targets could be $0.1980 or $0.1947, according to CoinLore. Momentum indicators also reflect this bearish turn.

Nevertheless, there is still a chance for a recovery. If Dogecoin climbs above $0.2280 and sustains a move past $0.2350, it could attempt to retest the $0.250 level.

A strong close above $0.2420 might shift momentum back in favour of the bulls.

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