Elon Musk admits that he will continue to support the Dogecoin project. TerraUSD is deemed as the origin of the crisis. DOGE price is in free fall, but it rises in reaction to Elon Musk’s comment.

Bitcoin and the crypto market is in a generalized fall, which largely resembles the fall of the ICO bubble of 2017. Given this scenario, panic is free in the market, however, some investors see this moment as a golden opportunity to buy cryptocurrencies, Elon Musk is taking advantage of the fall to buy Dogecoin (DOGE) for a discounted price.

A few minutes ago, on June 19, Elon Musk, CEO of Tesla and SpaceX and co-founder of The Boring Company and Neuralink, admitted on Twitter that he is buying Dogecoin after openly declaring that he will continue to support the meme cryptocurrency.

The Staggered Crash of the Crypto Industry: TerraUSD as the Origin of the Crisis

The free fall of the market is marked by serious news that threatens the health of the crypto industry. It all started with the implosion of TerraUSD (UST), Luna, and the Terra ecosystem. UST’s loss of parity caused an earthquake causing Luna to fall by 99% in record time. The seismic movements by Terra have been noted culminating in several collateral catastrophes.

It all started with the unilateral freezing of Celsius funds due to a liquidity crisis, shortly after the loss of parity of stETH aggravated the situation uncovering the possible bankruptcy of the Three Arrow Capital fund and recently some protocols begin to try to stop the outflow of assets, such as Babel Finance, which has discontinued withdrawals.

Several crypto companies are making mass layoffs to prepare their spending for a possible crypto winter, a stage where the crypto market remains prolonged with low prices.

Even in the face of this catastrophic scenario, the technology tycoon continues to support the meme cryptocurrency and buy DOGE in order for the price to rise again in the future.

DOGE Price in Free Fall, But Rises in Reaction to Elon Musk’s Comment

DOGE price is on a steep decline, Bitcoin is still down, currently in the $18,000 range at the time of writing, but altcoins see bigger declines. Over the past year, the meme king cryptocurrency has been steadily falling to pre-hype prices largely due to open support from Musk.

The highest historical price of DOGE was $0.68, now after the dramatic drop, it is trading in the $0.05 range.

Since Musk’s DOGE purchase declaration has recently occurred, we will have to wait to see if the market reacts by stopping the fall of the meme cryptocurrency. For now, you can see how the price of DOGE has risen vertically since almost the exact moment when the richest man in the world tweeted in favor of Dogecoin at 08:19 EST.

Now it’s up to the price to resist this impulse and stay at these levels, otherwise, it will remain as a circumstantial bullish candle.

By Audy Castaneda

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