Why is Dogecoin (DOGE) price down today?

The price of Dogecoin (DOGE) dropped 4.6% to $0.0808 under the influence of a broader crypto market correction on April 12. This downside move preceded the release of the U.S. consumer price index (CPI), which showed inflation eased to its lowest level in two years.

Dogecoin wipes out Elon Musk-led gains

Dogecoin's latest price drop appeared also after Elon Musk-owned Twitter removed the token's official mascot — the Shiba Inu meme — from its home button to reinstate its original bluebird logo.

Previously, DOGE price had surged by 30% to $0.104 on April 3 as speculations emerged that Musk is working on adding a Dogecoin payments on Twitter.

Instead, the website removed the Dogecoin logo from its home button around April 7. Since then, DOGE price has lost 5.25% and has effectively wiped out its Dogecoin-Twitter logo gains.

Related: Will Shiba Inu tail Dogecoin’s price rally?

DOGE price eyes 15% rebound

Nevertheless, DOGE should attract buyers near $0.080, which coincides with a support confluence comprising its long-standing ascending trendline and its 50-day exponential moving average (50-day EMA; the red wave), as shown below.

A bounce after or before testing the support confluence could put DOGE/USD on the road to $0.10 in April or early May, up around 15% from current price levels.

"High time frames this is an area of huge volume, probably a fine area to accumulate a spot position," noted independent market analyst Altcoin Sherpa, adding:

"But it could take a long time to play out as it normally does, so the opportunity cost of that $ could be pricey."

Conversely, a decisive break below the support confluence could increase DOGE's probability of falling toward $0.069. This level coincides with Dogecoin's multi-month ascending trendline support; it was also instrumental in limiting downside in December 2022.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.