Dogecoin’s value skyrocketed by over 30% today after Elon Musk’s Twitter adopted the meme coin’s symbol as its logo. The change took place following his recent request to dismiss the $258 billion Dogecoin lawsuit he’s facing.
After reaching a peak price of $0.1016, Dogecoin has retraced by 8.8% and is now trading at $0.091.
Is the recent surge in Dogecoin’s price a sign of things to come for other meme coins? Or is it merely a reflection of the pump power that a single tweet from Elon Musk can wield?
The Doge Days of Twitter: A New Icon, a New Era
The connection between Dogecoin’s recent price surge and the social media juggernaut’s logo change is undeniable. Twitter’s decision to (at least temporarily) replace its iconic bird with the equally iconic Shiba Inu face of Dogecoin has brought the cryptocurrency into the spotlight for the platform’s 360 million monthly active users.
The development, coupled with Musk’s Twitter post featuring a meme alluding to the permanence of the rebrand, has generated a lot of buzz on Twitter, with many speculating the move is not permanent and merely a late April fool’s joke.
Musk Twitter and the Dogecoin Phenomenon
Throughout the years, Elon Musk has shown a penchant for influencing the prices of various cryptocurrencies, with Dogecoin being one of his favorite targets. Musk’s Twitter activity has repeatedly demonstrated its ability to affect the value of the meme coin.
From his self-proclaimed title of “Dogefather” to his endorsement of Dogecoin as “the people’s crypto,” the CEO’s tweets have undeniably played a significant role in the coin’s market fluctuations.
In September 2022, Tesla, Musk’s electric car company, released a series of Cybertruck-inspired whistles with a price tag of 1,000 DOGE (or $60 at the time). This unconventional pricing strategy further solidified the connection between Musk and Dogecoin.
Musk’s collaboration with Dogecoin developers also led to a 25% reduction in the coin’s carbon emissions, proving that the entrepreneur’s involvement in the project extends beyond mere tweets.
However, Musk’s Twitter presence has also sparked concerns about potential market manipulation. The billionaire’s history of impulsive tweets has already cost him a $20 million fine from the U.S. Securities and Exchange Commission in 2018, following misleading statements about Tesla’s stock.
As Musk continues to wield his influence over the cryptocurrency market, questions about the ethics of his actions become increasingly relevant.
A Legal Minefield: Musk and the $258 Billion Lawsuit
On June 2022, Musk’s antics landed him in hot water once more, as a Dogecoin investor filed a $258 billion lawsuit against him, Tesla, and SpaceX. The plaintiff, Keith Johnson, alleged that Musk’s promotion of Dogecoin on Twitter was part of a pyramid scheme designed to inflate the coin’s value before letting it crash.
Musk’s legal team has countered these claims, arguing that sharing humorous images and expressing support for a cryptocurrency on Twitter cannot constitute fraud.
Last week Musk requested a U.S. judge to dismiss the lawsuit.
As the impact of celebrity endorsements and market speculation continues to prop up meme coins, the potential for other meme coins like Love Hate Inu to experience a similar price surge is high.
With Dogecoin’s value skyrocketing, let’s examine the cryptocurrency’s technical indicators to better understand the possible future price trends. The following analysis sheds light on the technical aspects that may influence Dogecoin’s market trajectory in the coming days.
Dogecoin on the Cusp of a Bullish Breakout? Technical Indicators Point to Growing Momentum
Dogecoin (DOGE) is experiencing significant price movement at the moment, having reached an intra-day high of $0.10500. The price has slightly stabilized as of writing, but is this a sign of a bullish reversal for the most famous meme coin, or is it just a failed breakout?
Dogecoin’s 20-day EMA is currently at $0.07713, while the 50-day EMA stands at $0.07776, and the 100-day EMA is at $0.07941. The convergence of these EMAs suggests that Dogecoin’s price trend is stabilizing, and a bullish crossover could be in the works.
RSI and MACD Indicators
The RSI is a momentum oscillator that measures the speed and change of price movements. Currently, Dogecoin’s RSI is at 67.15, which is a significant increase from the previous day’s RSI of 55.15. This indicates that buying pressure has increased, and the market sentiment is still bullish.
The MACD histogram for Dogecoin has increased from 0.00096 to 0.00163, further supporting the growing bullish sentiment.
Resistance and Support Levels
At the time of writing, Dogecoin is trading at $0.09140, representing a 15.65% increase so far today.
Dogecoin is currently facing immediate resistance at the $0.10666 to $0.10794 range. If the price convincingly clears this level, the next resistance area to watch is between $0.13562 and $0.13812.
On the other hand, if a failed breakout occurs, immediate potential support can be found at $0.09571 to $0.09718, followed by a more significant support area at $0.08980.
The technical indicators for Dogecoin suggest that a bullish reversal might be in sight. However, because the coin’s price surge was a result of Twitter’s marketing ploy, it is uncertain how the near term price momentum of Dogecoin will play out.
For a less risky meme coin that might benefit from the recent move as Dogecoin loses momentum, traders can look to Love Hate Inu, which could have more potential upside in the current meme coin rally.
As for Dogecoin, traders should keep an eye on the mentioned resistance and support levels to gauge the market sentiment and make informed decisions. As always, exercise caution and employ risk management strategies while trading in volatile markets.