DOGE lacks bullish momentum after Elon Musk’s recent endorsement

• Dogecoin price dropped by 20% since Elon Musk last tweeted about the digital asset.
• On-chain metrics show that DOGE must stay above a critical support level to avoid collapsing. 
• The network growth of Dogecoin is slowly fading away. 

Dogecoin price had a massive 30% spike on April 1 after Elon Musk tweeted that SpaceX will put a literal Dogecoin on the moon. However, this move didn’t last long, and practically all gains were lost within the next 48 hours. 

Dogecoin price at risk of plummeting down to $0.5

On the 4-hour chart, Dogecoin has created a strong support trendline that currently coincides with the 50-SMA and the 100-SMA at $0.056. The digital asset must stay above this critical point to avoid an 11% drop towards $0.05 as there is almost no support below.

DOGE/USD 4-hour chart

The In/Out of the Money Around Price shows a similar story with the most crucial support area between $0.055 and $0.057, which has 8.5 billion DOGE in volume. The IOMAP model indicates that Dogecoin has extremely weak support on the way down towards $0.048. 

DOGE IOMAP chart

Additionally, the number of new addresses joining the Dogecoin network has decreased in the past week despite a lot of social media presence. It is down by 4% and has established several lower highs since the beginning of March. 

DOGE Network Activity

Nonetheless, if DOGE bulls can manage to hold the critical support trendline at $0.056, the digital asset could see a significant rebound towards the previous high at $0.0592.