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 crypto market as it gained over 70% in its value in the last few days and nearly 30% in the last 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 crypto winter is now fading away as several cryptocurrencies, including leading digital assets and altcoins, are now benefiting from the rally- surges that are 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 some key factors pushing the community-favourite meme coin to the North. Dogecoin supporter Elon Musk’s recent acquisition of Twitter worth $44 billion 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 portfolio 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’ event 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 crucial support level at $0.088 and successfully trades 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 an extremely high level of 90, which indicates the complete domination of DOGE bulls.
The MACD line is also rising exponentially as Dogecoin trades above the EMA-200 trend line.
However, we may expect a slight bearish candle soon as DOGE may make a minor downward retracement at a price of $0.119. SMA-14 (simple moving average) is trading at 57, indicating 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 consult the opinions of the experts before investing in volatile crypto assets like Dogecoin, which can erase all your funds.