DOGE price is sweeping through levels last seen last in late June and early July after bowing to the intense selling pressure that has left the entire crypto market battered from Friday. The largest meme coin is hovering at $0.0636 on Wednesday, up a mere 0.6% in 24 hours with $379 million in trading volume and $8.9 billion in market capitalization.
X Is A Dog and Doge-Friendly Place – Elon Musk
The crypto market is quite pulverized at the moment after Bitcoin led the market into one of the most significant single-day sell-offs this year. The largest crypto slowed down near $25,000 after breaking out the previous range support at $29,000.
Due to the sell-off on Friday, Dogecoin investors are counting 9.5% in weekly losses, 15.9% in 14 days, and $16.5% in 30 days. The meme coin is trading at 91.34% from its all-time high of $0.7315 in May 2021 and has lost 7.6% over the last year.
Although battered like its peers in the market, this analysis seeks to unravel the unique position Dogecoin has over other meme coins and more importantly other cryptos in the market.
DOGE has over the years embraced the special relationship it shares with Elon Musk, the CEO of Tesla and the owner of X (formerly Twitter). Whenever Musk tweets either directly or indirectly about Dogecoin, the price has rallied.
Musk’s Twitter acquisition last October saw DOGE price explode to highs above $0.15 and most recently the rebranding of the microblogging platform from Twitter to X, with the long-term goal of integrating crypto payments triggered another short-term rally with Doge price climbing to $0.084 from $0.0645 in July.
Dogecoin enthusiasts and bulls capitalize on Musk’s tweets, which tend to pump the meme coin’s price to make quick gains. Hence, investors are waiting to see if Dogecoin could bounce significantly from the dip last week and begin the run to $1.
While replying to a tweet by @mayemusk, which read, “If you’re a Dog, X is the place to be,” Musk said, “X is a dog & Doge friendly place!”
If you’re a Dog, X is the place to be. https://t.co/CBC9p3yjBP pic.twitter.com/RvGJZJHuBy
— Maye Musk (@mayemusk) August 22, 2023
To many this reply may not mean much, however, the Dogecoin community and other crypto enthusiasts believe it implied that X would be integrating DOGE to power crypto payments on the platform.
Speculations have been mounting over which cryptos X would adopt to power crypto payments, with DOGE and Bitcoin being the top contenders.
DOGE Price Teases Breakout But There’s A Twist
DOGE price sprung upward after Elon Musk’s post on X but appears to be lacking enough momentum to push above the bearish rectangle pattern. This does not come as a surprise, especially with the crypto market nursing losses amid low volatility levels.
Nonetheless, the Moving Average Convergence Divergence (MACD) indicator reveals that the buyers have the upper hand, following the confirmation of a buy signal over the weekend. The Relative Strength Index (RSI) has also recovered from the oversold region and holds at $46.
While at first glance the technical outlook seems bullish, caution is advised keeping in mind the short-term rectangle pattern, likely to push Dogecoin to 6.23% to $0.0567 before staging a major recovery.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
