- Dogecoin price spiked 12.8% within 12 hours after a mysterious “XPayments” Twitter account appeared.
- The new Twitter account with no posts yet has garnered 100k+ followers in 2 days, further fueling speculation.
- Despite the rally, Dogecoin has retreated and trading volumes have dropped, raising doubts about the price surge’s sustainability.
- Charts suggest Dogecoin has been range-bound since Nov 2022, facing resistance at $0.1.
- If Dogecoin stays above $0.07, it could rally 30% to retest $0.1, with a possible 50% climb to $0.15 if a breakout occurs
Dogecoin used to be one of the best-performing cryptocurrencies, even during the deepest parts of the previous bear market.
However, most of 2023 saw a slight setback in the price performance of the “king of memecoins”.
Dogecoin, this time around, may be set for a comeback in 2024, especially with some exciting news from Twitter that (may or may not be) connected with Dogecoin.
XPayments On Twitter Sparks Dogecoin Rally
A strange new Twitter (X) page on Twitter popped up on the timeline quite recently, on 20 January.
The first part of this account’s strangeness is its name: XPayments.
This account has no banner image and has made no posts to date. However, it also also verified as “an affiliate of X”.
The second strange thing about this account is that it has garnered more than 100,000 followers in as little as two days since it was created.
The account’s bio on creation, read “Coming soon: XPayments. Pay anyone in the world with X.”, but has now been changed to a money bag emoji.
The third aspect of this story is that almost around the same time this account was created, Dogecoin started to skyrocket (while the rest of the market declined).
Dogecoin Reacts Once Again
Dogecoin immediately reacted to this development, rallying by around 12.8% in less than 12 hours.
Dogecoin went as far as hitting a seven-day high of $0.08978 sometime around 21 January, as traders dragged more speculation around about a possible Dogecoin integration with Twitter.
Despite the wild speculation, so far, there have been no posts from this account.
No announcements and no tweets about which payment functions it intends to offer, or whether it will even support crypto at all.
The Speculation On Dogecoin Mounts
Elon Musk has long been a supporter of Dogecoin.
The billionaire businessman has openly endorsed and even outrightly shilled the memecoin. A good example is that scenario in July 2023, when he changed Twitter’s official logo to Dogecoin’s for a few days, and even added a Dogecoin symbol to his Twitter bio.
This would explain why the speculation about Dogecoin integrations on Twitter has been a huge influence on the memecoins price.
A Twitter user even asked Grok, Elon Musk’s own AI, about whether we might see a Dogecoin integration on X, and here is what it said:
Let’s go over the impacts on Dogecoin itself, and see what’s going on with its price.
A Sustainable Rally Or Passing Fad (Price Analysis)?
To begin with, Dogecoin has already declined from this $0.08978 high and is now trading at 0.08226 with more than a 5% decline along with the rest of the market, according to data from CoinMarketCap.
Dogecoin’s trading volumes have also decreased by around 50% over the last day, leading to questions about its price action.
According to charts provided by TradingView, Dogecoin has been in a horizontal range since November 2022, explaining its relative sluggishness throughout 2023.
Dogecoin’s main problem is the $0.1 resistance, and the memecoin has tried unsuccessfully, to break above since November 2022, and experienced its last rejection in early December 2023, as shown above.
So was Dogecoin’s 12.8% rally simply a passing craze? There might be reason to believe that it wasn’t.
Dogecoin’s rejection from $0.1 in December last year, pushed it into a retest of the minor support around $0.07, as shown above.
It turns out that the Dogecoin rally was a rebound attempt from this support zone.
This means that if we do not see a break below $0.07, Dogecoin might be ready to rally straight up by another 30% and retest $0.1.
And who knows, we might see a break above this resistance, leading Dogecoin straight up by another 50% to $0.15.
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.