The recent acquisition of Twitter by Tesla CEO Elon Musk is sparking surges in his favourite cryptocurrency Dogecoin.
According to CoinMarketCap, Dogecoin has become highly traded in the cryptocurrency market as its value has gained over 70% in the past few days and almost 30% in the past 24 hours.
Starting as a joke, it now seems that investors are gaining trust in Dogecoin as Elon Musk successfully established himself on Dogecoin to be a reason for investment.
DOGE Gains Traction
The ongoing cryptocurrency is now fading as many cryptocurrencies, including major digital assets and altcoins, are now benefiting from the rally led by Bitcoin, Ethereum and Dogecoin.
The current interest rate hikes to control unexpected inflation rates have brought the worst price levels to leading altcoins like Dogecoin.
However, there are a few key factors that are pushing the community-favorite meme coin north. The recent $44 billion acquisition of Twitter by Dogecoin supporter Elon Musk sent Dogecoin to double-digit gains today.
Furthermore, the billionaire Musk also made a proposal previously to digitize the payments on Twitter with crypto by adding Dogecoin as a payment method.
Since then, whale investors have started accumulating Dogecoin in their investment portfolios with the hope of making lucrative profits.
According to the Dogecoin whale alert, the top 20 wallets of Dogecoin have moved over 400 million Doge tokens to crypto exchanges as DOGE price hits monthly highs.
Dogecoin has also introduced ‘The Great Burn’ program to burn 80% of the total supply to stabilize the price movement with solid liquidity.
Dogecoin Takes The Lead
The popular meme coin is currently taking the lead in forming continuous bullish candles in the price chart. Dogecoin’s price currently trades at $0.114 with a market cap of $14 billion.
Looking at the daily price chart, Dogecoin has broken its key support level at $0.088 and is successfully trading above $0.1 as per our previous analysis.
Our technical analysis reveals the Bollinger band’s upper limit is at $0.13; if the DOGE price breaks the resistance at $0.13, we can see its price extend its bullish momentum further to $0.181.
The RSI is trading at a high of 90, which shows complete dominance of the DOGE bulls.
The MACD line is also rising exponentially as Dogecoin trades above the EMA-200 trend line.
However, we can expect a slight bearish candle soon as DOGE could make a minor downside retracement at $0.119 price. The SMA-14 (Simple Moving Average) is trading at 57, which indicates a smooth bull run for Dogecoin.
DOGE may hold its bullish momentum further as the current market sentiments are positive and can be an excellent investment option for long-term holders.
However, Coinpedia advises investors to do their own research and seek expert opinion before investing in volatile crypto assets like Dogecoin, which could wipe out all your funds.
