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Elon Musk Effect Sends Dogecoin To New Highs! Is It The Time For DOGE To Rule Again?

Author: Qadir AK

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Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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Dogecoin has been dominating the memecoin sector as it has shown an excellent price potential in the last 24 hours. Dogecoin is currently flying over the crypto space as the Twitter acquisition deal worth $44 billion proposed by Dogecoin influencer elon musk is on the verge, and it may make a final call on Friday. This memecoin has made over 20% gain in the last 24 hours as it recently broke its crucial resistance level at $0.066. 

Dogecoin To Witness New Highs!

Dogecoin is currently outperforming in the crypto market as its market capitalization made an exponential rise to nearly 14%. The memecoin has gathered a wide range of investors due to the bullish news of Elon Musk’s acquisition of Twitter as the Dogecoin enthusiast has entered the Twitter headquarter. 

The last few weeks have been quite dull for DOGE as it traded in a range-bound area between $0.063 and 0.059 with less volatility. However, it gained a significant number of holders as it rose to 4,456,459 from 4,365,551 in the last three months. Elon Musk has been a huge supporter of Dogecoin, and his influence is quite impactful in bringing a noticeable price change in this cryptocurrency. 

Edul Patel, the CEO and co-founder of Mudrex mentioned that the bullish rally of dogecoin came after Elon Musk’s Twitter acquisition which drew the attention of investors to buy in the dip.

He added, “Markets tend to react more to speculations and hype when a particular event is nearing than during the actual event. A significant rally in the bluechip tokens and altcoins space gives more impetus to the memecoin momentum.”

DOGE Price May Trade Above $0.1

Dogecoin is skyrocketing, and the bull run does not seem to stop here as its green candles continue to register massive spikes in the price chart. According to CoinMarketCap, Dogecoin is currently trading at $0.076 with a market cap of $10.2 billion. 

The daily price chart of DOGE reveals that the memecoin initiated a fresh bullish rally from a low of $0.059 to an intraday high of $0.08150 today. The RSI-14 graph is rising vertically and trading near the level of 80, hinting at an overbought zone that may soon crash if the hype ends. The Bollinger band’s upper limit is $0.08, which is near the EMA-200 trend line. If DOGE maintains its price above $0.08, we can expect a further upward rally to $0.1. 

Conversely, the Bollinger band’s lower limit is $0.056, which is a crucial support level in the DOGE price chart. If Dogecoin drops below its support level, it can plunge hard to the bottom and may trade at $0.0488. 

However, the bullish rally is expected to continue as there is ample positive news from the community and its social dominance keeps rising. Dogecoin is relying on rumors as its price jump took place after Elon Musk’s Twitter crypto wallet news and the price may slump hard if it fails to maintain the same hype in the future

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Shayan Chowdhury

Shayan is a digital nomad and a professional journalist. He delivers high-quality engaging articles to Coinpedia through his in-depth research and analysis.

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