Markets

Musk Purchased Twitter. Of Course Dogecoin Reacted

Key Takeaways

  • Dogecoin has risen by greater than 30% over the previous 36 hours. 
  • The bullish impulse got here as Twitter confirmed that Elon Musk had turn out to be the corporate’s sole shareholder.
  • Additional upward stress may see DOGE rise to $0.23. 

Dogecoin has damaged out on the information that Elon Musk has acquired a 100% stake in Twitter. Whereas hypothesis mounts, the main meme coin may achieve additional momentum to enter a brand new uptrend and attain increased highs. 

Dogecoin Breaks Out

Dogecoin has gained important bullish momentum following Elon Musk’s Twitter acquisition. 

The social media large confirmed late Monday that it had accepted Musk’s supply and offered the corporate’s shares at $54.20 per unit in a transaction valued at round $44 billion. The shares have been priced at a 38% premium to TWTR’s closing worth on Apr. 1, 2022.

In the press launch saying the information, the Tesla and SpaceX CEO defined his determination to purchase a full stake within the platform by saying that he needs to unlock Twitter’s “large potential.” He additionally promised that he would enhance Twitter by “enhancing the product with new options, making the algorithms open supply to extend belief, defeating the spam bots, and authenticating all people.”

Dogecoin, the meme coin that Musk owns as a part of his crypto portfolio and has endorsed on Twitter on a number of events prior to now, has benefited from the Twitter buyout information. One clarification for the rally is the mounting hypothesis that Twitter may quickly settle for the meme coin as cost for its premium providers. Musk posted a sequence of tweets earlier this month discussing Twitter’s paid service, saying that the app may add assist for Dogecoin funds. “Perhaps even an choice to pay in Doge?” he wrote. Tesla started accepting Dogecoin funds for merchandise earlier this 12 months.

As is usually the case with important Musk-related information occasions, Dogecoin has skyrocketed by 30% over the previous 36 hours because the buyout rumors began to emerge and should have extra room to rise. The meme coin seems to have damaged out of a falling wedge, which anticipates a worth enhance of greater than 68%. A sustained day by day candlestick shut above $0.16 may encourage sidelined traders to re-enter the market, pushing the asset to $0.23. 

Supply: TradingView

Nonetheless, Dogecoin is topic to excessive hypothesis and has suffered brutal drawdowns prior to now. Regardless of re-entering the highest 10 cryptocurrencies by market cap after its current run, it’s nonetheless nearly 80% wanting its all-time excessive recorded in Could 2021. 

Any downswings beneath the $0.13 stage may generate panic amongst speculators and encourage them to exit their positions. A spike in promoting stress may then ship Musk’s favourite meme coin to $10, and even $0.06. 

Disclosure: On the time of writing, the writer of this piece owned ETH and BTC.

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