Dogecoin Gets Another Boost From Musk, What’s Next for DOGE

Dogecoin Gets Another Boost From Musk, What’s Next for DOGE

Key Insights

  • Dogecoin's price soared by 35% after Twitter replaced the Twitter bird logo on its homepage with a picture of the Dogecoin dog.
  • Dogecoin is back above $0.1 but may need some help to stay there
  • The support level to watch out for on dogecoin are the $0.097 – $0.1 zones.
  • A break below will lead to a steep price decline to the the$0.073 zone

Twitter CEO, Elon Musk has proven himself to be a big fan of Dogecoin for years now.

Since 2021, the billionaire businessman has had a strong influence on the price action of the memecoin, driving its price up by double-digit percentages with mere tweets and interview mentions.

The latest in the line of Musk-influenced Dogecoin explosions happened this week when Twitter did something unexpected.

The social media giant temporarily replaced the Twitter bird (also known as "Larry the Bird") on its homepage, with a picture of the iconic Dogecoin dog on Monday.

As expected, the price of the memecoin went crazy, shooting up by more than 30% within a single day.

Dogecoin's Price Soars

Dogecoin's price surged by more than 35% on Monday, rising from a low of about $0.077 to more than $0.1.

This logo change from Larry the Bird to that of Dogecoin's smiling dog was an apparent nod to the memecoin and sparked the momentum that took it above some semi-strong resistance levels.

Musk addressed this change on Monday, tweeting the words "as promised", along with an image of another Twitter user, suggesting that the businessman "just buy Twitter" a year ago.

Right after that, Musk tweeted another meme image featuring the Dogecoin dog, referring to the Twitter logo as "an old photo".

According to Reuters, the Doge logo emerged on the website two days after Musk requested that a judge dismiss a $258 billion racketeering case accusing him of operating a pyramid scheme to support Dogecoin.

The dogecoin has now been removed and replaced with Larry the Bird. However, Musk has been known to use Twitter and his tweets to "troll" his fans and critics.

At the same time, DOGE has received a lot of attention from Musk, who claims it may provide superior payment functionality than Bitcoin (BTC).

The Financial Times reported in January that a mechanism was being developed by Twitter to allow for payments on the social media network.

Although Twitter should "first and primarily" be for fiat currency, CEO Elon Musk has pushed for the platform to incorporate cryptocurrencies, which has in turn boosted the price of DOGE.

Dogecoin Price Analysis

After falling below the $0.091 zone sometime in May last year, Dogecoin has struggled around this price level.

<em>Daily chart showing the price action of Dogecoin</em>
Daily chart showing the price action of Dogecoin

As illustrated above, the memecoin has broken above this (red) resistance line several times over the last year, only to fall right below it again after a few weeks.

The price action of Dogecoin had been less than impressive for more than a year.

<em>Chart showing the descending wedge on Dogecoin</em>
Chart showing the descending wedge on Dogecoin

Asdes the minor flash rallies and flash-dips, the cryptocurrency mostly ranged between a descending wedge on its daily chart, as it struggled to get back up above $0.091.

The only saving grace for the memecoin's bulls was that recently, the memecoin broke above its 20-day EMA (red line above) and stayed above it.

This moving average served as a fairly strong support, while Twitter's logo change served as the catalyst that launched the memecoin into a breakout from this wedge and a break above the $0.1 zone.

<em>Chart showing the support lines on Dogecoin</em>
Chart showing the support lines on Dogecoin

This break above $0.1 means that the bulls have a narrow window to close above this level with a daily candle.

If a close above $0.1 doesn't happen sometime soon, the bears may sink the price of the cryptocurrency again, slowly, until it hits the $0.073 zone.

<em>Chart showing the possible price movement on Dogecoin</em>
Chart showing the possible price movement on Dogecoin

In essence, the support level to watch out for on dogecoin is the $0.097 – $0.1 zones, because a break below will certainly lead to a steep price decline as the cryptocurrency retests its 20-day EMA.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

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