Dogecoin is in a strong rally today adding over 54% at $0.12971; the move brought the Doge price to April 2022 levels. The rally for Dogecoin continues for the fifth consecutive day as investors and traders are excited about the acquisition of Twitter (TWTR) by Tesla’s CEO Elon Musk. The bullish momentum is also supported by a strong rise in its daily trading volumes.
DOGE fans hope that the Elon Musk deal might bring cryptocurrencies closer to Twitter. Many traders anticipate that the social media platform might use blockchain to reduce the bots, an issue that had started a legal dispute between Musk and Twitter that almost cancelled the $44 billion deal. Musk wants to stop the bots and spam accounts and promote free speech which may cancel the ban against some Twitter members including former US President Donald Trump’s twitter account. Musk decided on the first day in the office, to lay off four of Twitter’s top executives, which included the CEO, Parag Agrawal.
Binance crypto exchange released earlier this week that owns an equity share in Musk’s $44 billion Twitter deal. The crypto exchange is aiming to be the bridge between social media and blockchain – crypto technology. Binance created a specialized team which will work on providing crypto-based solutions to Twitter.
Dogecoin price trading at $0.12971, earlier today the coin hit the daily high of $0.15162, marking the highest level since April 26, 2022. DOGEUSD has lost 24.58% since the start of 2022 and 55% in the last 12 months.
Dogecoin’s recent rally sends the meme coin back to the eighth largest position in cryptocurrencies in terms of market capitalization, surpassing today Solana and Cardano with a market capitalization as of writing of $17.48 billion.
DOGE hit an all-time high of $0.6528 on June 5, 2021, according to coinmarketcap but since then the cryptocurrency dropped to $0.0490 in June 2022 and started a slow rebound.
The rally in DOGE this week changed the technical picture of the meme coin from bearish to bullish.
Strong resistance for dogecoin stands at 0.15162 the daily high. A break above might challenge $0.16617 the high from April 26, 2022. A convincing break above would open the way for 0.17280 the top from April 25, 2022.
On the contrary, initial support for DOGE is at $0.08268 the daily low. Below that, bears would face the support at the 200-day moving average at $0.07774. A move below $0.07774 support, might attract more sellers for a test of the 100-day moving average at 0.06543.
Despite the bullish momentum for Doge, traders should be cautious as the DOGEUSD has moved now to extreme overbought conditions. The RSI indicator prints today at 93.50 a level that we have never seen in Dogecoin history.
Nikolas has been involved in the finance industry for over fifteen years spanning across Europe and USA with a depth of knowledge and experience within many aspects of the financial markets. Nikolas gained several years experience with some of the Europe’s leading Brokers, as equity analyst, and trader managing accounts for both Private and Corporate Investors. He enjoys both the fundamental and technical aspects of trading focusing on stock markets and all FX majors. Currently, Nikolas provides analysis and comments to online financial publications. Educational background in Economics (BSc), and Finance (MSc).