It’s been official since the middle of the night and it’s the end of a scenario with multiple twists. After posting a video of himself, hilarious in the premises of Twitter, Elon Musk made no more mystery about his imminent intention to get his hands on the social network with the little blue bird.
A redemption and already inevitable consequences for Twitter
Since yesterday, Elon Musk has wasted no time. He tweeted that he had “freed the bird,” issued a statement vaguely outlining his intentions, then simply put end of the functions of the CEO of the companyParag Agrawal, Chief Financial Officer, Ned Segal, and Chief Legal and Policy Officer Vijaya Gadde.
To date, the financial package necessary for the takeover of Twitter is not yet known precisely, but it brings together a combination of loans, personal contribution and agreements with co-investors, such as Oracle founder Larry Ellison, Doug Leone of Sequoia Capital or even Binance’s Changpeng Zhao.
The 2022 revenue forecasts for Twitter have already been announced in retreat from the stated objectives and savings plans were in the pipeline. The arrival of Elon Musk at the controls of the company should only accelerate this process since the rumors already point to drastic measures.
Indeed, the payroll should drop by $700 million, and moderation budgets would be reduced by 25%. The company’s infrastructure and data centers will not be spared either.
As for the financial model and the strategic direction that Elon Musk wants, vagueness still reigns, but he hinted at the possibility of subscriptions and directed his first message towards advertisers: certainly to reassure them.
Elon Musk and Dogecoin: a definite influence on the price of crypto
By the time Elon Musk completed the Twitter buy on Thursday, Dogecoin was up 16% over the past 24 hours and hit $0.0768. Its trading volume was also up sharply (nearly $2.3 billion). If these economic information may seem distant from each other for the general public, connoisseurs of the crypto world know very well the links that exist between them.
Indeed, Elon Musk very frequently tweeted to express his enthusiasm or his support for the Dogecoin crypto. The value of Dogecoin had then increased by 20%, just after his first tweet. Over the months, the appeal of Dogecoin has been immense thanks to the influence of Elon Musk. In the opinion of some, this amounted to price manipulation and an artificially inflated value. Nevertheless, the businessman has however made Dogecoin an accepted means of payment for certain accessories marketed by his company Tesla.
There is then only one step for many people to imagine that Dogecoin quickly becomes the official twitter currency or at least a currency used as a tip on the social network. It is then obvious that the value of this crypto would appreciate immediately and in large proportions.
What price prediction for Dogecoin? Soon the 1 $?
Beyond the possibilities offered by Twitter or the opportunities offered by its takeover by Elon Musk, Dogecoin has positive characteristics to start rising again in a sustainable and certainly break through the $1 course.
Even though the 200-day moving average is now preventing Dogecoin from immediately hitting the coveted $1 level, with the creation of a Important resistance zone at $0.0800, buyers should have the long-term upper hand. Indeed, the MACD (Moving Average Convergence Divergence) indicator points out that buying intentions should take DOGE to just below $1 in a few weeks.
Finally, all the analyzes show that the deep downtrend that has shaken the price of Dogecoin since the bottom reached in May 2021 no longer has any momentum.
It is still certainly too early to say that a Twitter/Elon Musk effect will benefit Dogecoin. On the other hand, we can assure that, in view of the buzz observed for 24 hours, that the community of crypto investors is monitoring this closely and is about to massively buy DOGE at the slightest signal.