Dogecoin Forecast: Tesla sales dips 8.5%, How will DOGE Price react?

Dogecoin (DOGE) price slid to a 10-day low of $0.17 on Wednesday April 3, following disappointing results from Tesla’s (TSLA) Q1 2024 financial reports. On-chain data trends shows that DOGE traders are now bracing up for further downside.

TESLA Stock Dip Sends DOGE Prices Spiralling

In March 2024, Elon Musk’s influence on the Dogecoin community was brought to the fore again,  X (Twitter) which obtained payments licenses in 3 US states.

The event raised optimism about Elon Musk’s long-term public aspirations to integrate DOGE as the global official payment service on X (Twitter). As expected investors quickly piled on bullish bets, sending DOGE price into a 104% rally during the month of March 2024.

However, things quickly took a negative downturn at the start of April. While the Dogecoin dip was initially triggered by widespread liquidations across the crypto markets on April 2, the market downturn has been further exacerbated following Tesla’s quarterly car deliveries reports which showed negative sales performance for the leading EV auto maker.

DOGE bulls cut leverage after Tesla Reports First Negative Quarterly Growth Since 2020

On April 2, Tesla reported vehicle deliveries of 386,810 for Q1 2024, an 8.5% decline from the same quarter last year. The impact saw TSLA stock prices instantly drop by 6% within 24-hours of the reports. However, the report also appears to have sent negative shockwaves across to the Dogecoin ecosystem.

Indicatively, on-chain shows how DOGE bull traders have rapidly cut down on their leveraged bets since the report was released.

Coinglass’ Funding rate metric below tracks real-time changes in fees paid DOGE bull traders to keep their active leveraged long positions open.

At the close of April 1, DOGE funding rate stood at 0.11% but at the time of writing on April 4, that figure has now dipped to 0.02%

As seen DOGE Funding rate has dropped significantly since Tesla negative Q1 reports. Effectively, this implies that Dogecoin bull traders are now less confident, hence they are cutting down on their leveraged positions.

With the growing fears of further downside, if these holders begin to exit their positions, DOGE price could struggle to make an early rebound in the days ahead.

Dogecoin (DOGE) Price Forecast: Can bull defend $0.15?

Based on the declining funding rates observed in the derivatives markets, there’s a widespread pessimism about Dogecoin short-term prospects, which could leave the door open to a major reversal below $0.15 in the days ahead.

However, in the spot markets, IntoTheBlock, aggregate exchange order books chart shows that the bull have mounted a daunting support buy-wall to avoid a downswing below $0.15.

As seen below, Dogecoin bulls have placed active orders to purchase, 780 million DOGE around the current prices, while active sell orders stand at 600 million DOGE.

With an excess market demand of over 180 million DOGE, the bulls look set to defend the $0.15 support level fiercely.

But, for the markets to enter a recovery phases, Dogecoin bulls must establish a support level above the $0.20 area.