Key Insights
- In January 2022, Musk began buying shares of Twitter and eventually became its CEO and largest shareholder on 27 October.
- In a tweet captioned “Slides from my Twitter company talk,” Musk rolled out a few statistics about the social media platform.
- Despite the downward direction of the cryptocurrency market, Dogecoin managed to print positive gains.
Billionaire and business magnate Elon Musk has been one of the most vocal and visible Dogecoin supporters since 2022. The Tesla CEO, over the years, has been one of the major influencers of the memecoins price via tweets, memes, and even direct endorsement.
In January 2022, Musk began buying shares of Twitter and eventually became its CEO and largest shareholder on 27 October. This happened after he made a 44 billion dollar offer to the company’s stakeholders and acquired a 9.1% stake.
Ever since Musk’s takeover of Twitter, there has been wild speculation about which changes might get implemented on the micro-blogging platform.
However, one of the most prominent of these bits of speculation is that of possible integration between a blockchain-based payment system and Twitter.
Finally confirming these speculations in a tweet, Musk shared slides from a self-described “Twitter Company Talk” to all 110+ million followers.
The contents of this tweet fueled a massive spike in the price of Dogecoin, and the buzz has continued to resonate through the market.
Dogecoin as a Payment System on Twitter?
After well-known tech blogger Jane Manchun Wong speculated in a 27 October tweet that Twitter had already started working on a wallet prototype that supports cryptocurrency deposits and withdrawals, DOGE’s price surged by 40% almost overnight.
Twitter is working on a “wallet prototype” that supports “crypto deposit and withdrawal”
— Jane Manchun Wong (@wongmjane) October 24, 2022
It now appears that something similar has happened this week.
In a tweet captioned “Slides from my Twitter company talk,” Musk rolled out a few statistics about the social media platform, including one that showed “new user sign-ups” being at an all-time high, a new “encrypted DM” feature and another that showed hate speech impressions being lower among the platform’s users.
It is notable that nowhere in the tweet did the Twitter CEO mention “Dogecoin” or even “DOGE”.
However, Dogecoin investors and traders were undeterred in buying the memecoin right away, hoping that Dogecoin may be the missing link in the tweet’s fourth slide.
This is understandable because one of the tweet’s slides mentioned “payments” alongside a blank image, which was very much unlike all the other announcements in the lineup. It almost seemed like a piece of the “puzzle” was missing.
This blank slide beside the “payments” announcement is most likely what caused the 22.4% spike in the price of Dogecoin, according to CoinMarketCap.
Dogecoin (DOGE) Price Analysis
Despite the downward direction of the cryptocurrency market, Dogecoin managed to rise by 22.4%.
The FTX crash earlier in the month crashed the price of Dogecoin from a consolidation around the $0.1 zone on 8 November to a low of $0.07 on 9 November.
After rising from its slump and entering a consolidation phase around the $0.085 zone where the 20 and 50-day exponential moving averages (red and green lines) kept the cryptocurrency’s price from going any further up, the cryptocurrency fell right back to its previous $0.07 low. It began its climb to the upside afresh.
However, after the tweet from Elon Musk about a “supposedly undecided” payment system and the Dogecoin rush that followed, the memecoin broke through these moving averages in a 22.4% move to the upside.
However, the bullishness on Dogecoin was short-lived. The memecoin, after hitting the $0.1 zone again, reversed and began to trend downwards again.
As far as Dogecoin’s present goes, the cryptocurrency is now headed for a retest of the $0.85 zone and its 20-day EMA, where the bears will likely try to lower the price.
The memecoin’s daily RSI hovers around the neutral zone and may prove that the bears and bulls are evenly matched. For now, at least.
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.
