According to the chart, BTC and ETH have stabilized after a recent sell-off. Bitcoin retraced up from support around $20,750. Ether was also firm above $1,070, which signaled the asset's sideways potential. Meanwhile, Dogecoin faced some serious obstacles. We will talk about the technical picture of the instruments in a while.
It was reported that Elon Musk, SpaceX, and Tesla are being sued for $258 billion for creating a financial pyramid scheme based on Dogecoin. Musk is accused of driving Dogecoin prices up last year.
"Defendants were aware since 2019 that Dogecoin had no value yet promoted Dogecoin to profit from its trading," the complaint says. "Musk used his pedestal as the world's richest man to operate and manipulate the Dogecoin pyramid scheme for profit, exposure, and amusement."
The lawsuit was filed by those who have been investing in Dogecoin since April 2019. It sets out a claim for damages of $86 billion and triple damages of $172 billion. They also want Musk and his companies prohibited from promoting Dogecoin, and for trading Dogecoin to be declared gambling under federal and state laws.
So far, neither Musk nor SpaceX and Tesla lawers gave any comments. Dogecoin has lost about 67% this year, which is not so bad compared to other altcoins and tokens that have lost up to 90%. Last year, the cryptocurrency traded at 74 cents.
Notably, Musk has not faced scrutiny for the first time. Last year, he manipulated the market a lot, including Dogecoin and Shiba. There were even complaints about Musk to the SEC. However, the businessman managed to get away clean. The story may repeat itself again. Given that not only Dogecoin but the entire crypto market is bearish, proving that it is Elon Musk's responsibility will be almost impossible.
As for the technical picture of Dogecoin, support is seen at 0.0436 and resistance stands around 0.0960. Should Dogecoin go above the barrier, it may then return to trade around 12 or 13 cents.
In the short term, BTC should get back above $21,800 so that bullish activity can increase. If the asset consolidates above the range, the price could quickly return to the mark of $24,200. Alternatively, a break through $20,700 and consolidation below the level could push the instrument to the $19,200 mark with targets at $18,500 and $17,600.
Yesterday, ether was one step ahead of breaking through the psychological level of $1,070. The asset is likely to start a bullish correction if the price returns to $1,170. In such a case, it may then head towards $1,282 and $1,406. The uptrend could emerge after the instrument settles there, with targets seen at the highs of $1,548 and $1,721. If pressure on ETH is strong, selling will become possible around the nearest support of $1,070. Ether could plunge and head towards $997, should this range get broken. In such a case, targets would stand at the lows of $925 and $876 where bullish activity could increase.
