The price of Dogecoin is up nearly 9% today as Elon Musk’s acquisition of Twitter is back on the table. But will Dogecoin return to its 2021 highs?
Elon Musk’s latest SEC filing
A letter sent to lawyers from Twitter by “Parts of Musk” on the sec.gov website states:
Gentlemen: On behalf of X Holdings I, Inc, X Holdings II, Inc and Elon R. Musk (the “Musk Parties”), we are writing to advise you that the Musk Parties intend to proceed with the closing of the transaction contemplated by the April 25, 2022 Merger Agreement.
L’stock Twitter was also boosted by the news, much more so than DOGE. Could cryptocurrencies lag stocks, and could the price of DOGE rise?
the Classes Twitter’s stock closed Tuesday’s session up 22% at $52.05. Elon Musk is set to buy Twitter at $54.20 a share, for $44 billion.
Today, the relations department of investors from Twitter (@TwitterIR) confirmed the transaction:
Dogecoin Price Prediction
Currently, Dogecoin is trading around $0.065, having hit an intraday high of just over $0.066 at the time of posting this article.
Dogecoin is still down around 92% from its all-time high of $0.74 hit shortly before Elon Musk appeared on the show Saturday Night Live to talk about the popular meme currency, in May 2021.
Despite these 18 months of bear market, Dogecoin still has a capitalization market share of $8.7 billion, making it the largest meme token in the crypto market.
Its main competitor, shiba inushas a market cap of $6.3 billion, and new meme coin Tamadoge has recently gained 1,870% since its token’s pre-sale to reach a market cap of over $150 million, surpassing Baby Doge Coin and Dogelon March.
With its high market cap, and being an inflationary asset, Dogecoin may struggle to recover. Every tweet from Elon Musk or every news item that caused the price of Dogecoin to rise – like Tesla accepting DOGE for the purchase of goods, and later SpaceX – completely withdrew.
Conservative investors might want to wait and see if this latest rally in Dogecoin price can actually spark a new trend. ascending.
From an analytical point of view technical, that would mean higher lows and higher highs printed on an HTF (High Timeframe) chart. On the weekly chart, if DOGE price can start to close candles above $0.089, then the market setup would turn bullish.
One of the top crypto traders on Twitter, TraderSZnotably opened a long position targeting this level last week when the price of Dogecoin was at $0.06.
From a point of view macroeconomic, there is little to indicate a long-term price reversal, even with the 11.6% rise in the weekly loop. TraderSZ tends to take short term positions in a sideways range.
Is dogecoin a good investment right now?
In 2022, every short-term Dogecoin pump was an opportunity for a high R:R short – even after a 92% decline, DOGE has little use and an infinite supply, allowing it to continue to decline.
Another reputable trader, Altcoin Sherpa, is now eyeing a short sale of Dogecoin from current levels, since this latest Elon Musk-related move. His current Dogecoin price prediction is bearish.
Like the tweeted Vlad TenevCEO of robinhoodat the beginning of the year, Dogecoin cannot compete with a standard debit card transaction as a medium of exchange and payment.
Speculation among Dogecoin holders is that once Elon Musk owns Twitter, DOGE could become the “native currencyfrom the social media platform – however, the billionaire has yet to establish a roadmap for this.
Read our full article on predicting the price Dogecoin for a closer look at Dogecoin price history, more TA and fundamental analysis, and some possible bullish predictions.
Also check out our recent price prediction for tamadogea potential ‘Dogecoin killer’ that is deflationary with low fixed supply and strong growth potential, highlighted in Cointelegraph yesterday.
We first examined TAMA in our cryptocurrency presales section, and since its 18x price increase, we have additionally added pre-sales reviews of additional tokens, including the IMPT token.