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Investing.com – Last week, Tesla (NASDAQ:) CEO Elon Musk acquired social media platform Twitter (NYSE:) and since then the price of the has risen more than 100%.
Sentiment was stoked by speculation that the prominent DOGE advocate may soon accept cryptocurrency on the platform as payment. Musk himself had already mentioned a few months ago that this was within the realm of the possible.
There was also a conversation between him and FTX CEO Sam Bankman-Fried where the future of Twitter was discussed. By then, cryptocurrency was already playing a big role in Musk’s plans:
“My plan B is a blockchain-based version of Twitter, where ‘tweets’ are integrated into the transaction as comments. Then you would have to pay around 0.1 doge for each comment or for the transmission of that comment” .
About to pay. Elon Musk also confirmed these days that content creators should be paid. While on other platforms this is settled by fiat currencies, DOGE could play a role on Twitter.
Elon Musk has announced that account verification will cost $8 per month in the future, which not only allows him to generate revenue, but also declares war on bots. Those who invest that $8, however, will receive more than just a blue checkmark:
“Priority to replies, mentions and search”, which is important to combat spam/fraud. Added to this is the ability to post long videos and audios, while advertising is cut in half.”
For all this, Dogecoin should be used in the future. Elon Musk has it in mind, as his tweets suggest.
Technical benchmarks to watch on Dogecoin
Dogecoin is currently losing -14.43% with a DOGE/USD price of $0.1328, while the weekly gain stands at 109.17%.
A negative divergence emerged with the formation of a high on November 1 at $0.1582. While the price was forming a higher high, the RSI was forming a lower high (green lines). This signals a weakening of positive momentum, which usually indicates a downward correction.
The 23.6% Fibo retracement of $0.1342 was just breached as support and if the decline is confirmed with a daily close price below this level, losses are likely to widen towards the Fibo retracement 38.2% from $0.1195.
Below that, the room for a continuation of the downward move towards the 50 percent Fibo retracement of $0.1075 would increase.
Only if the bulls manage to defend the daily close 23.6 percent Fibo retracement can yesterday’s high be retested.
By Marco Oehrl