Dogecoin’s (DOGE) cost rallied to the best levels in 2 several weeks as traders assessed Twitter’s potential to produce a cryptocurrency wallet product.
Elon Musk fuels Dogecoin rally again
DOGE’s cost leaped to $.081 on March. 27. The cost acquired roughly 40% 2 days after Jane Manchun Wong, a well known tech blogger, claimed that Twitter is focusing on a wallet prototype that supports cryptocurrency deposits and withdrawals.
Elon Musk may be the thread that connects Dogecoin and Twitter. Captured, the Tesla and SpaceX Chief executive officer won the bid to buy Twitter for $44 billion. Later, on April 11, he flirted with the thought of adding Dogecoin like a payment method for that Twitter Blue subscription service.
DOGE’s cost increased 30% to $.17 in ten days after Musk’s pro-crypto suggestion towards the Twitter board. However the memetoken fell drastically afterward, reaching as little as $.05 in June as Musk tried to back from the deal, citing his concerns over Twitter’s user figures.
Twitter sued Musk in reaction, eventually prompting a legal court to rule in the favor. Chancellor Kathaleen McCormick, the judge overseeing the legal fight, denied attempts by Musk to postpone the trial, noting the deal should near by 5 pm ET on March. 28.
Musk altered his Twitter bio to “Chief of Twit” on March. 26, adopted with a personal trip to the Twitter headquarters on the day that. That elevated anticipations that Musk would close the offer per a legal court deadline, paving the way in which for Dogecoin to get a fundamental element of the Twitter platform.
#Dogecoin pumped 15% following this: pic.twitter.com/MCZ9iGyt1a
— Altcoin Daily (@AltcoinDailyio) October 27, 2022
DOGE cost risks 20% correction
From the technical perspective, Dogecoin’s recovery shows indications of exhaustion since it’s cost tests a powerful resistance confluence.
Around the three-day chart, the confluence comprises three resistance levels: a multi-month climbing down trendline, the 50-3D exponential moving average (the red wave), along with a horizontal level around $.08, as proven below.
Given DOGE’s immediate correction after testing these resistance levels, the token’s chance of heading lower seems high. Meanwhile, its downside target is close to the climbing trendline which has offered as support in recent several weeks.
That puts DOGE’s cost on the way to around $.06 in Q4/2022, roughly 20% underneath the current cost.
Related: How lengthy will the bear market last? Signs to look out for a crypto market reversal
On the other hand, a decisive breakout over the resistance confluence might have DOGE eye the 200-3D EMA (nowhere wave) near $.11 since it’s next upside target. Quite simply, a 50% boom from current cost levels.
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