FX.co ★ Elon Musk continues to pump Dogecoin, despite being sued for $ 258 million

Bitcoin is trading above $ 21,000, and ether is still trying to break above $ 1,156. To maintain an upward correction, it is very important to update weekly highs, and it is best to do this every day. But we will talk about the technical picture and further trading signals below. Now I would like to note the statement made by the CEO of Tesla and SpaceX, Elon Musk, in response to a lawsuit that was recently filed against him. Musk confirmed his commitment to dogecoin and will continue to buy and support the meme cryptocurrency. The price of dogecoin rose after his statements amid a downturn in the cryptocurrency market. Musk has been engaged in similar market manipulations for a very long time, but the SEC turns a blind eye to this – apparently, this will happen until the cryptocurrency market receives strict regulation.

Tesla CEO Elon Musk has repeatedly confirmed his support for the meme cryptocurrency Dogecoin. This weekend, he made several Twitter posts announcing that he would continue to support DOGE. A day earlier, the owner of Tesla also mentioned DOGE on Twitter in response to a tweet by one of the creators of Dogecoin, Billy Marcus, in which he stated his desire for people to use DOGE not only for "pumping and dumping". Musk tweeted that Dogecoin can be used to buy goods from his companies Tesla and SpaceX, hinting that his offer will be expanded in the future.

Let me remind you that Tesla started accepting dogecoin to pay for some goods in January of this year. At the moment, DOGE jumped to the level of $ 0.062662, which is 25% higher than the minimum recorded in the last 24 hours. However, DOGE remains 30% below the maximum recorded in the last 30 days.Elon Musk has been a Dogecoin supporter for a long time. He is known in the crypto community as Dogefather. He believes that DOGE is a popular cryptocurrency, and has potential, but bitcoin, in his opinion, is more suitable as a means of saving.

As noted above, last week, Elon Musk was sued for $ 258 billion, accusing the technology magnate of creating a pyramid scheme, which, by the way, was based on Dogecoin. Musk was accused of being the culprit in inflating the price of the Dogecoin cryptocurrency, which grew at a record-high pace last year. The lawsuit says: "The defendants falsely and deceptively claim that Dogecoin is an investment, which is a lie since Dogecoin has no value at all." The lawsuit was filed by several citizens who have invested in Dogecoin since April 2019. It sets out a claim for damages in the amount of $ 86 billion plus triple damages in the amount of $ 172 billion. The plaintiffs also demand that Elon Musk and his companies be banned from promoting and advertising Dogecoin, since under US law this cryptocurrency looks more like a gambling game than an investment, which, by the way, is prohibited in many states.

As for the technical picture of Dogecoin, then, looking at the chart, what can we talk about here. The nearest major support level is seen in the 0.062 area, which I advise you to focus on when buying a trading instrument. The most problematic resistance is the 0.0960 area, an exit above which may mark a new upward trend, returning Dogecoin to the area of 12 and 13 cents.

As for the short-term prospects of bitcoin, it is obvious that there are not many people willing to buy it even at its current lows. To develop the initiative on the part of the bulls, active actions in the region of $ 21,000 are needed. Only a consolidation above this range will quickly return the trading instrument to $ 21,850, allowing investors to calm nerves a little, who had problems after the collapse of bitcoin at the weekend to below $ 18,000. A breakdown of the nearest support in the area of $ 19,600 and another consolidation below this range will fail the trading instrument back to a minimum of $ 18,400, and there it is close to $ 17,540.

Ether has difficulties with $ 1,156, and it is necessary to update them at least, as a maximum – to gain a foothold above this range. It will be possible to talk about building an upward correction only after a return of $ 1,156, which will quickly return the ether to $ 1,255, and there is $ 1,385 very close, which will be a serious problem for traders. Only consolidation above will allow building an upward trend for the trading instrument with the prospect of updating the highs in the areas of $ 1,548 and $ 1,746. If the pressure on ETH persists, purchases in the area of the nearest support of $ 1,050 are not excluded. A break in this range will be the reason for a new collapse of the ether and a hike to $ 964. In this case, I advise you to count on new lows: $ 876 and $ 763, where the big players will start to act actively again.